1111111111111111 IIIIII IIIII 11111 1111111111 111111111111111 IIIII IIIII IIIII IIIIII IIII 11111111
`US 20080167988Al
`
`c19) United States
`c12) Patent Application Publication
`Sun et al.
`
`c10) Pub. No.: US 2008/0167988 Al
`Jul. 10, 2008
`(43) Pub. Date:
`
`(54) SYSTEM AND METHOD OF MANAGING
`CONTACTLESS PAYMENT TRANSACTIONS
`USING A MOBILE COMMUNICATION
`DEVICE AS A STORED VALUE DEVICE
`
`(75)
`
`Inventors:
`
`Albert Sun, Hsinchu (TW);
`Pao-Chieh An, Taipei City (TW);
`Ying-Che Lo, Hsinchu City (TW);
`Chee-Horng Lee, Hsinchu (TW);
`C.W. Pang, Hsinchu City (TW);
`Hung-Tsai Yen, Yijhu Township
`(TW)
`
`Correspondence Address:
`MACRONIX
`C/O HAYNES BEFFEL & WOLFELD LLP
`P.O.BOX366
`HALF MOON BAY, CA 94019
`
`(73) Assignee:
`
`Macronix International Co., Ltd.,
`Hsinchu (TW)
`
`(21) Appl. No.:
`
`11/753,408
`
`(22) Filed:
`
`May 24, 2007
`
`Related U.S. Application Data
`
`(60) Provisional application No. 60/883,747, filed on Jan.
`5, 2007, provisional application No. 60/915,377, filed
`on May 1, 2007.
`
`Publication Classification
`
`(51)
`
`Int. Cl.
`G06Q 40100
`(2006.01)
`G06Q 30/00
`(2006.01)
`H04M 11100
`(2006.01)
`(52) U.S. Cl. ................. 705/39; 455/406; 701/1; 705/40;
`705/64; 705/77
`
`(57)
`
`ABSTRACT
`
`A method and apparatus handling payment transactions in a
`system using mobile communication devices as stored value
`devices are disclosed. A transaction operations server
`receives multiple records of the transaction from the stored
`value device----one via a communication channel through the
`telecommunication provider network, and another via an
`independent communication channel. The records are recon(cid:173)
`ciled at the transaction server for transaction verification.
`
`Mobile
`device
`acts as
`smart
`cards
`
`11
`
`Telecom Servicoo-1--~
`Provider
`
`Mobile Payment--1--~
`Server
`
`16
`
`15
`
`Payment Service
`Provider
`
`Data Server
`
`RA (Registration
`Authority) Server
`and Workstation
`
`Operation Server
`and Workstation
`
`\_
`
`14
`
`Merchant
`
`Contactless
`reader/terminal
`with embedded
`OS and AP
`
`POS terminal
`
`APPL-1011
`APPLE INC. / Page 1 of 36
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`
`APPL-1011
`APPLE INC. / Page 2 of 36
`
`

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`APPL-1011
`APPLE INC. / Page 3 of 36
`
`

`

`Patent Application Publication
`
`Jul. 10, 2008 Sheet 3 of 22
`
`US 2008/0167988 Al
`
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`
`APPL-1011
`APPLE INC. / Page 4 of 36
`
`

`

`Patent Application Publication
`
`Jul. 10, 2008 Sheet 4 of 22
`
`US 2008/0167988 Al
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`
`APPL-1011
`APPLE INC. / Page 6 of 36
`
`

`

`Patent Application Publication
`
`Jul. 10, 2008 Sheet 6 of 22
`
`US 2008/0167988 Al
`
`Data Space
`EEPROM 64KB
`
`EEPROM
`Bank 1 (32K)
`
`IS014443 T e A 4K
`
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`Bank O (28K)
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`
`OTPROM
`Common area (32K)
`
`100
`
`APPL-1011
`APPLE INC. / Page 7 of 36
`
`

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`APPL-1011
`APPLE INC. / Page 8 of 36
`
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`APPL-1011
`APPLE INC. / Page 9 of 36
`
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`APPL-1011
`APPLE INC. / Page 10 of 36
`
`

`

`Patent Application Publication
`
`Jul. 10, 2008 Sheet 10 of 22
`
`US 2008/0167988 Al
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`
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`APPL-1011
`APPLE INC. / Page 12 of 36
`
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`APPL-1011
`APPLE INC. / Page 13 of 36
`
`

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`APPL-1011
`APPLE INC. / Page 14 of 36
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`APPL-1011
`APPLE INC. / Page 15 of 36
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`
`APPL-1011
`APPLE INC. / Page 16 of 36
`
`

`

`Patent Application Publication
`
`Jul. 10, 2008 Sheet 16 of 22
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`US 2008/0167988 Al
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`APPL-1011
`APPLE INC. / Page 17 of 36
`
`

`

`Patent Application Publication
`
`Jul. 10, 2008 Sheet 17 of 22
`
`US 2008/0167988 Al
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`APPL-1011
`APPLE INC. / Page 18 of 36
`
`

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`APPL-1011
`APPLE INC. / Page 19 of 36
`
`

`

`Patent Application Publication
`
`Jul. 10, 2008 Sheet 19 of 22
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`US 2008/0167988 Al
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`APPL-1011
`APPLE INC. / Page 20 of 36
`
`

`

`Patent Application Publication
`
`Jul. 10, 2008 Sheet 20 of 22
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`US 2008/0167988 Al
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`APPL-1011
`APPLE INC. / Page 21 of 36
`
`

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`APPL-1011
`APPLE INC. / Page 22 of 36
`
`

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`APPL-1011
`APPLE INC. / Page 23 of 36
`
`

`

`US 2008/0167988 Al
`
`Jul. 10, 2008
`
`1
`
`SYSTEM AND METHOD OF MANAGING
`CONTACTLESS PAYMENT TRANSACTIONS
`USING A MOBILE COMMUNICATION
`DEVICE AS A STORED VALUE DEVICE
`
`CROSS-REFERENCE TO RELATED
`APPLICATIONS
`
`[0001] The present application claims the benefit of U.S.
`ProvisionalApplicationNo. 60/883,747 filed 5 Jan. 2007, and
`U.S. Provisional Application No. 60/915,377, filed 1 May
`2007, which are incorporated by reference.
`
`BACKGROUND
`
`[0002]
`1. Field of the Invention
`[0003] The present invention relates to mobile commerce,
`and more particularly electronic payment systems for por(cid:173)
`table communication devices that act as smart cards.
`[0004] 2. Description of Related Art
`[0005] Because of the widespread adoption of mobile tele(cid:173)
`phones and of the benefits attributed to the emerging smart
`card technology for use as stored value devices, there is
`considerable interest in adapting mobile telephones using
`smart card technology for use as stored value devices. United
`States Patent Publication No. 2006/0097037 Al, entitled
`Electronic Value Transfer Device Equipped with Non-Con(cid:173)
`tact IC Interface, by Sakamura, et al. describes one system
`taking advantage of the smart card technology combined with
`mobile terminals such as cell phones.
`[0006] The use of portable electronic devices as smart cards
`that store value creates a new class of security problem,
`because of inability to control access to and tampering with
`the smart cards. Computer-based security technology, includ(cid:173)
`ing encryption and authentication systems can limit the expo(cid:173)
`sure to tampering. However, consumer trust in such com(cid:173)
`puter-based security technology is low. Also, the incentives
`for breaking through the computer-based protection grow as
`the value stored on the device increases.
`[0007]
`In addition, the financial transaction networks used
`for mobile commerce architectures have been dominated by
`the banking system and communication system providers.
`This reliance on existing banking and telecommunication
`provider networks limits the flexibility and has impeded
`widespread development and use of the technology.
`[0008]
`It is desirable to provide an architecture for mobile
`commerce that reduces the exposure to tampering with
`mobile communication devices and fraudulent use of the
`electronically stored money, while also reducing the depen(cid:173)
`dence on access to the banking and telecommunication pro(cid:173)
`vider system networks.
`
`SUMMARY OF THE INVENTION
`
`[0009] A system architecture is described for managing
`transactions that use a mobile communication device, like a
`cellular telephone or another similar device. Mobile commu(cid:173)
`nication devices used in the architecture described herein are
`characterized by secure memory usable for storing value and
`a controller which manages the secure memory. The control(cid:173)
`ler on the mobile communication device supports communi(cid:173)
`cation links for the purposes of managing data in the secure
`memory by at least two independent media, including a pro(cid:173)
`tocol executed via a telecommunication provider network and
`a secure protocol preferably via a short range medium using
`a wireless proximity coupling device or other type commu(cid:173)
`nication link, with a transaction terminal in proximity with
`the mobile communication device. In one example, the pro(cid:173)
`tocol executed via the telecommunication provider network
`
`may be compliant with an industry standard data communi(cid:173)
`cation protocol like an email protocol or a Short Message
`Service SMS protocol defined in GSM recommendation
`03.40. Also, in one example, the secure protocol executed for
`communication with a wireless proximity coupling device at
`the transaction terminal may be a contactless protocol as
`contemplated by industry standard ISO 14443. The stored
`value device may be implemented for example like a smart
`card as contemplated by industry standard ISO7816 or other
`similar technologies
`[0010] According to the system architecture described
`herein, a transaction operation server communicates with
`both a transaction terminal and a telecom interface terminal.
`A telecom interface terminal in the system described herein
`manages communication channels through the telecommuni(cid:173)
`cation provider network between the transaction operation
`server and the mobile communication devices utilizing the
`system. The transaction terminal, which may be a stand-alone
`computer, point of sale device or network, or another mobile
`communication device, is configured using secure memory
`technology to prevent tampering with programs or data by the
`merchants or other people having access to the terminals. The
`transaction operations server is configured to execute specific
`application programs which can be tailor-made for individual
`transaction terminals particularly at merchant sites, utilizing
`a highly secure and trusted communication environment,
`such communications based on the public key infrastructure
`PKI. Also, for any transaction that involves changes to appli(cid:173)
`cation programs or data that affects the use of the transaction
`terminal or contents in the stored value device, highly secure
`authentication/approval/ciphering
`techniques
`can
`be
`executed over the communication links between the transac(cid:173)
`tion operation server and the transaction terminals. Transac(cid:173)
`tions for value, or for changing programs or data stored on the
`mobile communication device, are secured by a protocol
`between the transaction terminal and the mobile communi(cid:173)
`cation device using the secure protocol for communication
`with the reader.
`[0011] Transactions for value executed according to the
`architecture described herein include purchasing goods from
`merchants, purchasing electronic (virtual) coupons or tickets
`to entertainment events that can be stored on the communi(cid:173)
`cation device, purchasing services, transferring funds in the
`form of electronic checks, electronic coupons and electronic
`tickets to other mobile communication devices, redeeming
`electronic checks, coupons or tickets to entertainment events,
`and so on.
`[0012] The controller on the mobile communication device
`is configured to deliver transaction records or other records
`for the purposes of accounting and verification to the trans(cid:173)
`actions operation server, at the time of transactions and/or
`periodically independent of actual transaction times, using a
`communication channel through the telecommunication pro(cid:173)
`vider network. Data delivered via the communication channel
`through the telecommunication provider network is used as a
`second source of validation of actual transactions executed
`using transaction terminals, and to provide information that
`can be used to detect tampering with the secure memory on
`the mobile communication device.
`[0013]
`Interfaces with the banking network are managed by
`the operations server, which includes an account registration
`service to establish user accounts, and maintains the neces(cid:173)
`sary links with the banking network for transferring value
`from banking accounts to the stored value accounts on the
`mobile communication devices.
`[0014] The user can add value to the stored value device and
`redeem value from the stored value device through a transac-
`
`APPL-1011
`APPLE INC. / Page 24 of 36
`
`

`

`US 2008/0167988 Al
`
`Jul. 10, 2008
`
`2
`
`tion terminal, while the mobile communication device is in
`both online and off-line modes. When the mobile communi(cid:173)
`cation device operates in an online mode, it acts as an inter(cid:173)
`active terminal for the user accessing a web portal associated
`with the operations server, which redirects the access to a
`merchant site or otherwise presents an online interface for the
`user of the mobile communication device. The operation
`servers can act in real time to settle transactions in the online
`mode. When the mobile communication device operates in an
`off-line mode, the individual merchant in possession of the
`transaction terminal used for the off-line transaction is
`responsible for the value transferred to the mobile communi(cid:173)
`cation device relying on the credit of the individual holding
`the mobile communication device, for example by treating
`the transaction like a transaction for the sale of gift cards. For
`off-line transactions, the individual merchant can rely on the
`credit card network or require cash for transactions requiring
`delivery of value to the mobile indication device. Further(cid:173)
`more, the transaction terminal is configured to deliver trans(cid:173)
`action records and other records for the purposes of account(cid:173)
`ing and verification to the transactions operation server using
`a secure channel between them, at the time of transactions
`and/or periodically independent of actual transaction times.
`[0015] One possible method for handling payment transac(cid:173)
`tions in a system as described above includes:
`[0016]
`storing data representing an amount of money on
`secure memory in a mobile telephone;
`[0017]
`establishing a link between the mobile telephone
`and a transaction terminal in proximity with the mobile tele(cid:173)
`phone;
`[0018]
`executing communications between the mobile tele(cid:173)
`phone and the transaction terminal using the link to change
`the amount of money represented by the data stored in the
`mobile telephone according to a particular transaction;
`[0019] passing a first record of the particular transaction
`from the mobile telephone to an operation server via a first
`communication channel through the telecommunication pro(cid:173)
`vider network;
`[0020] passing a second record of the particular transaction
`from the transaction terminal to the operation server via a
`second communication channel through a communication
`network coupled to the transaction terminal and the operation
`server; and
`[ 0021]
`reconciling the first and second records at the opera(cid:173)
`tion server to verify the particular transaction.
`[0022] Another possible method for handling payment
`transactions in a system as described above changes the
`stored value represented by data on the mobile communica(cid:173)
`tion device according to the particular transaction, and is
`initiated by at least partly wireless communication between
`the mobile communication device and the transaction termi(cid:173)
`nal, and includes:
`[0023]
`receiving, at the transaction operations server, a first
`record of the particular transaction from the mobile commu(cid:173)
`nication device via a first communication channel through the
`telephone service provider network;
`[0024]
`receiving, at the transaction operations server, a sec(cid:173)
`ond record of the particular transaction from the transaction
`terminal via a second communications channel through a
`communication network coupled to the transaction terminal;
`and
`[0025]
`reconciling the first and second records at the trans(cid:173)
`action server to verify the particular transaction.
`[0026] The first record may be transmitted at the time of the
`particular transaction, or consolidated with records of other
`transactions executed over a period of time, and reported at
`times independent of the particular transaction. Likewise, the
`
`second record may be transmitted at the time of the particular
`transaction, if for example the transaction terminal is online at
`the time of the particular transaction, or consolidated with
`other transaction records and reported at times independent of
`the particular transaction, if for example the transaction ter(cid:173)
`minal is off-line at the time of the particular transaction. The
`reconciliation of the first and second records at the operation
`server allows for strong verification of the actual transactions,
`for detection of tampering with the mobile communication
`device, with the secure stored value memory, and for detec(cid:173)
`tion of tampering with transaction terminals.
`[0027] A data processing system acting as a server for
`mobile payment, a mobile communication device, and a data
`processing system acting as a transaction terminal are
`described which supports a mobile payment architecture
`described herein. Thus, a data processing system acting as an
`operations server supporting mobile payment as described
`herein comprises the data processor that includes program
`storage storing programs executable by the data processor
`and having communication resources supporting a plurality
`of communication protocols, including for example protocols
`which are executable supporting links through the telecom(cid:173)
`munication provider network to a mobile communication
`device, and protocols that are executable over the Internet.
`Programs on the operations server include a program adapted
`to control a transaction involving changing stored value on a
`mobile communication device. Thus, a representative pro(cid:173)
`gram on the operations server includes:
`[0028]
`sending data representing a stored value to the
`mobile communication device;
`[0029]
`receiving a first record of a particular transaction
`from the mobile communication device via a first com(cid:173)
`munication channel through a telephone service pro(cid:173)
`vider network;
`[0030]
`receiving a second record of the particular trans(cid:173)
`action from the mobile communication device via a
`transaction terminal via a second communications chan(cid:173)
`nel through a communication network coupled to the
`transaction terminal;
`[0031]
`reconciling the first and second records to verify
`the particular transaction; and
`[0032] updating an account associated with the particu-
`lar transaction.
`[0033] Another program on the operation server is adapted
`to receive periodically transmitted stored value audit records
`delivered from mobile devices via the telecommunication
`provider network to the operation server. The operation server
`also includes programs adapted to review and monitor the
`stored value audit records and account activity to detect fraud
`or tampering with the stored value memory on the mobile
`devices, and to otherwise improve security of the mobile
`payment system.
`[0034] Another program on the operation server control
`particular transactions initiated by at least partly wireless
`communication between 1) a mobile communication device
`having a stored value represented by data on the mobile
`communication device and 2) a transaction terminal. The
`program instructions perform the following:
`[0035]
`receiving, at the transaction operations server, a first
`particular transaction of the mobile communication device,
`wherein the first transaction adds a first amount of money to
`the stored value represented by data on the mobile commu(cid:173)
`nication device, and wherein the first amount of money is in a
`first data type representing a first business issued currency
`honored by a first group of one or more businesses;
`[0036]
`receiving, at the transaction operations server, a sec(cid:173)
`ond particular transaction of the mobile communication
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`APPL-1011
`APPLE INC. / Page 25 of 36
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`US 2008/0167988 Al
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`Jul. 10, 2008
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`3
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`device, wherein the second transaction subtracts a second
`amount of money from the stored value represented by data
`on the mobile communication device, and wherein the second
`amount of money is in a second data type representing a
`second business issued currency honored by a second group
`of one or more businesses;
`[0037]
`exchanging, at the transaction operations server, at
`least part of the money represented by data on the mobile
`communication device between the first data type and the
`second data type.
`[0038] Another programs executed by the data processing
`system including instructions to maintain an accounting data(cid:173)
`base to keep records of the plurality of data types including
`