2 Field of the invention

3 The present invention relates to credit cards and more

4 particulary to a credit card verification systems which

5 utilizes point to point electronic communication.

6 Background of the invention

7 Credit card fraud and misuse is a costly problem for

8 credit card companies. Credit card fraud and misuse can

9 involve the use of lost or stolen cards or alternatively

10 it can involve the use of a card to obtain credit beyond

11 the limit allowed for the particular card. One widely

12 used technique to minimize fraud involves the use of a

13 periodically printed booklet which lists stolen or

14 otherwise invalid credit cards. Prior to issuing credit,

15 a merchant checks to see if the credit card is listed in

16 the booklet. If the card is listed in the booklet,

17 credit is refused.

18 With a another widely used system, the store clerk uses a

19 telephone or an electronic terminal device to check the

_*

* X- ^' 20 credit card number with a central computer facility. In

*, 21 some existing systems the card number is read from the

22 magnetic stripe on the card and automatically sent to a

23 central computer where the status of the account is

checked and reported to the merchant. The merchant is then either authorized to issue the credit or told not to advance the credit.

One problem with present day systems is that the store clerk or merchant is put in jeopardy when he must tell the card holder that the card is not valid or that credit is refused. The communication of such information to the card holder may precipitate a violent reaction. One aspect of the present invention is that it minimizes the need for the merchant or clerk to discuss whether or not a card is valid.

The first credit cards that came into widespread use were simply plastic cards with raised lettering. The raised lettering provided a means to manually imprint credit card vouchers. Later credit cards were developed that included a magnetic stripe on the card. The magnetic stripe provides a means whereby a terminal can automatically read information directly from the credit card. Such cards are in widespread use today.

A relatively new development is a credit card that contains imbedded electronic circuitry including memory circuits that can store information concerning the cards "open to buy" status. Such credit cards are often referred to as "Smart Cards". An article published in Spectru . Institute of Electrical and Electronic

Engineers, October 1988, page 35, and the references cited therein, give a description of the present state of the art relative to credit cards that include electron ic circuitry.

The electronic circuitry imbedded in "Smart Cards" generally includes a microprocessor, a read only memory (ROM) , a programmable read only memory (PROM) and a random access memory (RAM) . Smart Cards do not have any built-in devices which can be used to manually provide data to the card's internal microprocessor. Smart Cards must interact directly with electronic terminal equipment in order to provide data or information to the circuitry inside the card. Furthermore, Smart Cards generally do not include any built-in devices which can display information stored in the card. In order to interrogate or update a card's "open to buy" status the Smart Card must interact with relatively expensive transaction support equipment. The widespread use of Smart Cards has been somewhat inhibited by the need to use relatively expensive terminal equipment connected to a central computer each time the information in the card is interrogated or updated.

The above referenced Spectrum article also describes a relatively new development, termed a "Very Smart Card". The Very Smart Cards described in the Spectrum article include a keyboard that makes it possible to manually

input data or information into the circuitry inside the card. Very Smart Cards also include a display so that the card can be manually interrogated to determine information stored therein such as its "open to buy" status.

The Very Smart Cards described in the referenced Spectrum article are the size of a conventional credit card (554.0 by 85.6 by 0.76 millimeters) and they include embedded therein a battery, a central processing unit (CPU) , 16,000 bytes of ROM, 8,000 bytes of RAM, a real-time clock and calendar, a keyboard, a controller, a transducer that emulates a magnetic stripe, and electrical contacts that can interact with contacts in a terminal.

Very Smart Card were designed to eliminate the need for a direct interaction with an expensive terminal each time one wanted to update a card's "open to buy" information. With a Very Smart Card, each month when the issuing bank furnishes the cardholder with a monthly statement, the bank also provides the card holder with a set of numbers. The card holder is instructed to key the set of numbers into the associated Very Smart Card. The numbers which are keyed into the card update the card's "open to buy" status. Thus the bank can reset the usage limits according to the user's payment behavior. If the user is traveling and has not received a statement with the new

set of numbers for the card, the card holder can take the card to any member bank, where it is inserted into a terminal and the appropriate set of numbers is downloaded into the card. As with conventional cards, various operations in a Very Smart Card are protected by requiring the use of a Personal Identification or PIN number.

The Very Smart Card is a significant improvement over the Smart Card; however, the need to periodically manually key a new set of numbers into the card is a distinct limitation of the Very Smart Card. Futher ore, if a Very Smart Card is stolen, there is no way to deactivate the card until it is inserted into a terminal that is connected to a central computer.

The present invention provides an improved credit card which utilizes point to point radio communication to provide an indication of whether a card is valid.

Summary of the Invention The present invention uniquely combines credit card technology, integrated circuitry technology, and point- to-point radio communication technology. A credit card built in accordance with the present invention includes integrated circuitry which can process data combined with integrated circuitry which provides point-to-point radio communication. The circuitry for processing data can be

relatively simple electronic circuitry that merely activates an indication of whether or not the card is valid or it can be computer type circuitry such as the circuitry in what are generally termed Very Smart Credit Cards. The point-to-point communication circuitry can be time slot protocol paging circuitry such as that in certain time slot protocol radio pagers. The present invention makes it possible to update or deactivate a credit card from a remote location by sending signals over the communication channel. Thus a card can be deactivated or updated even while the card is in the user's pocket or wallet. The communication channel can be used in conjunction with the clock in the card to insure that the card is automatically deactivated if a new radio communication which re-authorized the card is not received within preset time limits. This prevents a thief from inhibiting deactivation of the card by shielding it from radio communications.

Description of the Drawings Figures 1A and IB show perspective views of the inside and outside of a first embodiment of a credit card built An accordance with the present invention.

Figure 2A shows the outside appearance of a second embodiment of a credit card which includes the present invention.

Figure 2B is an exploded perspective view of a second embodiment of a credit card built in accordance with the present invention.

Figure 3 is a diagram of the overall system of the present invention.

Figure 4 is a block diagram of the circuitry in a credit card build in accordance with the present invention.

Detailed Description of the Invention A first embodiment of the present invention is shown in Figures 1A and IB. Figure 1A shows the back substrate 5 and with four electronic elements 1 to 4 mounted thereon. Figure IB shows a top cover 6 which has a window 7 and normal raised lettering 8. When cover 6 is mounted on substrate 5, the resulting structure has the dimensions of a conventional credit card, namely, 554.0 by 85.6 by 0.76 millimeters

Electronic elements 1 to 4 are mounted within the credit card in a conventional manner such as the electronic elements are mounted in a Smart Card. Alternatively, backplate 5 can be a printed circuit board with electrical lines thereon and electronic elements 1 to 4 can be surface mounted and connected to circuit lines on backplate 5.

Element 1 is a point to point radio receiver which has an associated loop antenna la. The radio receiver 1 and the antenna la are built to receive messages or signals transmitted from commercial radio stations as an FM subcarrier in accordance with the time slot protocol described in Patent 4,713,808 Gaskill et. al., or in copending application serial number , filed . Alternatively, other point-to-point communications technologies could be used. The details of how information is sent to receiver 1 will be described later with reference to Figure 3 and 4.

The output lb of point to point radio receiver 1 is connected to logical circuitry 2. Logical circuitry 2 can be a conventional gate array that receives and decodes signals from radio receiver 1 and which activates a display 4. Elements 1,2, and 4 are powered by a conventional watch battery 3.

The display 4 can be a simple display that is either blank or which activates a simple icon in response to signals from radio receiver 1. In a simple embodiment, the display 4 can either display the words VALID or VOID. The logic in block 2 can include a timer which switches the display to VOID if an appropriate signal is not received via point to point receiver 1 within a preset interval. In a øystem where the card has a high credit

limit such an interval might be set to one hour or less.

Alternatively, in order to economize on communication time, the display might normally be set to VALID except when a signal is received indicating that the display should be switched to VOID.

One advantage of this system is that the card shows on its face as to whether or not it is valid. Thus the clerk need not communicate this information to the card holder. This minimizes the danger to the clerk who is handling the transaction. There is no need for the clerk to look up information or for the clerk to take any action. With the present invention, the card can on its face show whether or not it is valid. The valid or invalid indication can be activated from a remote location in an automatic fashion when the bank's computer determines that the cards limit has been exceeded. Alternatively, if a card is stolen or lost, the indication can be activated by a telephone call to the bank which in turn would activate the point to point communication device with the appropriate message.

The point to point communication device 1 merely need receive a message and provide a set of signals to logic circuit 2. Logic circuit 2 in turn decodes the message into an ON of OFF condition for the display 4. Logic for

converting a binary message from a receiver 1 into control signals is well know and will not be explained in detail. The details of receiver 1 are shown in Figure 4 and will be explained in more details with reference to the second embodiment of the invention.

An alternate embodiment of the present invention adapted for use in a credit card 10 is shown in Figures 2A and 2B. The dimensions of the card 10 are conventional, that is, the card is 554.0 by 85.6 by 0.76 millimeters. The card 10 includes a keyboard 11 and a display 12 that are similar to the keyboard and display included in the Very Smart Card described in the previously referenced Spectrum article.

Figure 2B shows in a diagrammatic exploded view the internal structure of the card 10. A number of integrated circuits 21 are mounted inside the card on a backplane 24. An antenna 22, and a display 12 are also mounted on backplane 24. The circuitry is covered with a sheet 25. The details of the circuitry 21 inside the card will be explained later with reference to Figures 3 and 4.

The details of mounting the integrated circuits 21 inside the card are not specifically shown since these are conventional and can be similar to the structure of known Smart and Very Smart Cards. The numeral 21 designates

all of the integrated circuits inside the card. The details of how the circuits are interconnected is shown in Figure 3 and 4. The manner of mounting the circuits 21 on backplate 24 can be conventional. In the simplest form of packaging, the integrated circuits 21 can be surface mounted on a printed circuit board 24 which forms the back of the card. The circuits can then be encapsulated with conventional encapsulating material and the entire assembly covered with a top sheet 25 which will form the top or front of the card.

The circuitry inside the credit card can be divided into two main parts 31 and 32 as shown in Figure 3. Circuitry 31 is a point-to-point radio receiver and circuitry 32 is relatively conventional computer circuitry of the type found in Smart and Very Smart cards. Additional detail concerning the circuitry is shown in Figure 4 and will be explained later with reference to Figure 4.

The radio receiver 31 and the antenna 22 are built to receive signals transmitted from commercial radio stations as an FM subcarrier in accordance with the time slot protocol described in Patent 4,713,808 Gaskill et. al., or in copending application serial number , filed . Alternatively, other point-to-point communications technologies could be used.

The credit card 10 is designed to operate in a system where credit authorization information is communicated to the card via the point-to-point radio receiver 31. A computer 34A in a bank or clearing house 34 would contain the principal accounting records. The computer in the bank 34 would be programmed to generate credit limits for each card monitored by the system. These credit limits would be used to calculated "open to buy" values for each credit card. The "open to buy" value is coded into a sequence of digits similar to the sequence of digits that must be manually keyed into what are termed Very Smart ₍ Cards.

The sequence of digits generated by the computer 34A in bank 34 are sent to a subcarrier generator 35 which can be similar to the subcarrier generator described in the previously referenced patent and patent application. The subcarrier generator 35 in turn send the information to FM radio transmitter 36 which broadcasts these digits as part of a time slot message. The information broadcast by radio station 36 is received by receiver 31.

The broadcast protocol can be similar to that described in the previously referenced patent so that a particular sequence of numbers can be directed to one and only one credit card. Thus a card's "open to buy" limits can be updated without the necessity of the operator keying a number into the card.

Furthermore, if a credit card is stolen, the computer 34A can receive a loss notification report by telephone 33 and very quickly send out a message that deactivates that particular credit card. The cost to companies of fraud perpetrated by lost or stolen credit cards is very high. The ability to quickly deactivate a credit card is a distinct advantage. With the present invention, a credit card can be deactivated while it is in a thief's pocket without any action or notice to the thief.

One possible alternate embodiment of the present invention is a system that includes either an alarm or a radio transmitter in a credit card. In this way, when a credit card is stolen the point-to-point communication device could be used to activate the radio transmitter which could then be used to locate the thief. Alternatively or in addition, the point-to-point communication device could be used to set a control in the card so that the next time the thief tries to use the card, a message will be given to the merchant indicating that the card was stolen.

Another alternate embodiment of the invention provides means whereby normal paging messages such as "call 444- 1212" can be displayed on display 12. In this way the credit card 10 can also serve as a point-to-point paging

receiver of the type shown in the previously referenced patent and patent application.

The programming in the various computers in the system is not explained in detail since it is conventional and state of the art once the function and overall combination of components is known. Furthermore, after the combination of hardware is known and the overall functions are specified the computer inside the credit card can easily be programmed to perform the desired functions. For example, if desired, the computer can periodically interrogate the clock and put an appropriate note on the display if the "open to buy" status has not been updated within a specified period.

Figure 4 shows additional detail of the circuitry inside the credit card. , The circuitry is divided into two parts. The first part of the circuitry designated 32 is similar or identical (except for programming) to the circuitry in what is termed a Very Smart Card. This circuitry includes I/O contacts 41, serial I/O 42, a central processing computer 43, an I/O device 44 with an associated magnetic transducer 47 and a keyboard 11. The system also includes a program memory 48, a data memory 49, a clock 50, an LCD driver 45 and an LCD display 12. The various units are interconnected by a data and control bus 52.

The second part of the circuitry inside the card is a point-to-point communication device 31. The point-to- point communication device 31 is designed to receive and transmit to the circuitry 32, a sequence of numbers. This sequence of numbers either resets the card's "open to buy" limit or it deactivates the card. The point-to- point communication device 31 is similar to the radio paging device described in the previously referenced patent application. Key aspects of the device are the ability to individually address a large number of receivers and the ability to operate with very low power drain. As described in the above referenced patent and patent application, the point-to-point communication device 31 includes a radio receiver 56, a subcarrier data demodulator 55 which digitizes the signal from the receiver and then extracts the required information, a decoder 54 which decodes the protocol, and a microprocessor 53 which controls the entire process.

Each credit card has an assigned registration number. The point-to-point receiver 31, compares received messages to the assigned registration number and only operates on messages designated as being for the particular receiver. The receiver operates on a time slot protocol that requires the receiver to be operative for only a very short period of time, thereby extending battery life. The receiver 56 is frequency agile so that

it can automatically scan a variety of commercial stations for appropriate messages.

While the invention has been described with reference to preferred embodiments thereof, it will be understood by those skilled in the art that various changes in form and detail may be made without departing from the spirit and scope of the invention. From this description of the preferred embodiment of the invention, those skilled in the art will recognize a wide variety of applications, alternate embodiments and variations in detail of the invention.

What is claimed is: