WO2003044722A1

WO2003044722A1 - Method fora dynamic pin code system

Info

Publication number: WO2003044722A1
Application number: PCT/US2002/036824
Authority: WO
Inventors: Per Olov Karemar
Original assignee: Pomark, Inc.
Priority date: 2001-11-19
Filing date: 2002-11-14
Publication date: 2003-05-30
Also published as: AU2002359415A1

Abstract

The method is for using a financial card (12) and includes the steps of the financial institution setting (14) up validity parameters (16a) for the financial card (12) that determines permissible electronic usage of the card (12) by a card user (17). The card user (17) also sets up preferred validity parameters (16b). The parameters (16b) have time period variables (22) for specifying a first time period (23) when the card (12) is usable so that the card (12) is unusable outside the first time period (23).

Description

METHOD FOR A DYNAMIC PIN CODE SYSTEM

Technical Field

The present invention relates to a method for a dynamic pin code system.

Background and Summary of Invention

The use of electronic financial cards such as bank credit cards is becoming quite common. The use of credit cards is acceptable at most commercial entities such as stores and is very convenient for the consumer. However, credit cards theft and other fraudulent behavior are on the increase .

Credit-card companies lose substantial amounts of money due to theft and falsification. There is a need for an effective and reliable way of improving the security of financial cards such as credit cards.

The method of the present invention provides a solution to the above-outlined problems. More particularly, the method of the present invention is for using a financial card and includes the steps of the financial institution setting up validity parameters for the financial card that determines permissible electronic usage of the card by a card user. The card user also sets up preferred validity parameters. The parameters may have time period variables for specifying a first time period when the card is usable so that the card is unusable outside the first time period. Brief Description of the Drawings

Fig. 1 is a schematic view of a primary log-in scheme of the present invention;

Fig. 2 is an elevational view of a bank card; Fig. 3 is a schematic view of a .secondary log-in scheme of the present invention; and

Fig. 4 is a schematic view of a financial unit.

Detailed Description With reference to Figs. 1-4, the dynamic pin code system of the present invention includes a primary log-in setting 10 wherein a customer of a financial institution 14, such as a bank, sets up allowable ways of using a bank card 12 before the bank card 12 may be used. The institution 14 may also set up restrictions to the use of the card 12. The card 12 has an optical, data or physical code 15 that is unique to the card 12. The code 15 may also be a combination of optical, data and physical codes. The primary log-in setting 10 may involve the customer setting a set of validity parameters for the card 12 that determines how the card 12 can be used. Of course, the financial institution may also set certain parameters of the card 12. The setting 10 may require the use of a conventional keyboard to enter the settings by using letters and numbers. A validity parameter system 16 may be set so as to limit the usage time and functions of the card 12. Certain functions may be a function of time (f (t) ) while other functions (f) are independent of time. A function in the system 16 may either be activated, which is indicated in Fig. 1 as functions (f) or f(t), or inactivated, which is indicated as a blank in the system 16.

For example, a frequency variable function 18 may be set so that the card 12 cannot be used more than once within a time period such as two hours. The frequency variable 18 may also be linked to one of the other functions so that, for example, money cannot be taken out twice from a certain bank location within a certain time period, such as within a time period of two hours .

The setting 10 may also have a destination variable 20 so that the card 12 cannot be used twice in a row at a first destination, such as a particular gas station or grocery store. It is also possible to limit the use of the card to certain geographical areas such as county or cities. The only way to use the card twice at the first destination is by first using the card 12 at a second destination or any other destination between the use at the first destination. For example, the user must use the card 12 at a destination other than the first destination before the card is used a second time at the first destination. Of course, the user may decide not to use this type of setting when setting all the function of the setting 10 and the above-described setting is only used as an illustrative example to show the versatility of the present invention.

The parameter system 16 may have a time period variable 22 that limits when during the day the card 12 may be used. For example, the setting 10 may be set so that the card 12 can only be used during office hours at the second destination and during the evening hours at the first destination. This means, the card 12 cannot be used before or after office hours at the first destination. The setting 10 may also be set to limit the days of the week the card can be used. The days of the week setting may apply to all types of functions or to only a selected group of functions, if so desired. The parameter system 16 may have a cash function 24. For example, the bank unit 14 may have an agreement with a certain grocery store that the card 12 may be used as a cash card so the store can immediately withdraw money from the card 12 or the customer's bank account without having to give a credit and wait for payment later by the customer via the credit card procedure. The parameter system 16 may also have an invoice function 26 so that the customer may buy at a store and then receive an invoice from the store that can be paid by credit card, Internet banking, cash, check or any other payment method.

The system 16 may include a discount function 28 so that the registered user of the card 12 is entitled to a discount at a particular store while other non-card customers at the store are not entitled to the same discount. The customer may also be entitled to bonus points and other promotional schemes .

The system 16 may have a maximum amount per time function 30 so that the amount of money withdrawn from the user's account in the database 46 that is connected to the user's accounts at the bank unit 14. When the maximum amount is reached, no money can be withdrawn from the account until the allotted time period for the maximum amount limitation has expired. This function 30 may be particularly useful for users that tend to buy too much and go beyond their means. The function 30 may also be combined with other functions such as the frequency function 18. If the maximum amount, as stipulated by the function 30, is exceeded the card 12 cannot be used although the frequency function 18 has not been exceeded. It is also possible to require the user to use the card 12 at a certain frequency or require minimum amount of usage. If the user is not using the card enough, the card may be inactivated or certain privileges and functions are withdrawn. This is similar to the minimum requirements for frequent travelers to keep certain privileges. In this way, the credit-card company can force the customers to consume if the customer want to keep the card active or to keep all the functions of the card active.

The setting 10 may also include a combination of one or many of the variables in the parameter system 16. In this way, if the card 12 is stolen, the thief may not be able to withdraw money, although the personal identification code and the password are known, if the thief violates one or many of the functions of the system 16 of the setting 10. It may also be possible to limit the use of the card 12 by requiring that the card 12 must use the functions in a certain order. For example, the user 12 must first use the card 12 at a certain grocery store before the user can withdraw money from the bank. This is another way of the bank or credit company to encourage a certain behavior of the bank card owners .

In order to be able to use the card 12, a user must not only conform to the setting 10 but also know the secondary log-in setting 13. All segments 40, 42, 44 of a database unit 46 must be satisfied before, for example, money can be withdrawn from the user's account. The segment 40 may be linked to the setting 10, the segment 42 to the card code 15 and the segment 44 to the secondary setting 13. The setting 13 usually requires a personal identification number (PIN) and a password. The card 12 can, in this way, only be activated when the user conforms to both the setting 10 and the setting 13.

An important feature is that the governing time parameter is the real time of the database 46 so that a dishonest bank employee cannot go into the system and retroactively manipulate or create extra time since real time cannot be manipulated. The bank employees are not informed in the system about how and where the time parameters are built and stored. The time parameters only appear as unreadable code language. Every signal from the card 12 into the database 46 includes a real time signal that must be matched with the real time of the database 46.

Some of the important advantages of the present invention are that a robber may not be able to force the cardholder to withdraw money from the cardholder's account if it would violate the settings of the cards. Also, a thief that has stolen the card and has access to the PIN and password may not be able to use the card unless the thief also has the primary setting 10. Finally, a bank employee cannot gain access to money on the cardholder's account without having access to the settings of the setting 10, the setting 13 and the code 15. These advantages dramatically reduce the risk of unlawful use of the card 12 and provide good protection for the individual cardholder. In operation, the method of using the financial card 12 may comprise the steps of the financial institution setting 14 up validity parameters 16a for the financial card 12 that determines permissible electronic usage of the card 12 by a card user 17. The card user 17 also sets up preferred validity parameters 16b. The parameters 16b have time period variables 22 for specifying a first time period 23 when the card 12 is usable so that the card 12 is unusable outside the first time period 23. In operation, the method of using the financial card 12 may comprise the steps of the financial institution setting 14 up validity parameters 16a for the financial card 12 that determines permissible electronic usage of the card 12 by a card user 17. The card user 17 also sets up preferred validity parameters 16b. The parameters 16b have time period variables 22 for specifying a first time period 23 when the card 12 is usable so that the card 12 is unusable outside the first time period 23. For example, the card user may specify that the card 12 can only be used during working hours . More particularly, the variables 22 may specify the first time period 23 at a first destination 25 and specify a second time period 27 at a second destination 29. In this way, card may, for example, only be used at a certain bank at work during office hours and at another bank closer to the home of the card user 17 in the evening. Thus, the card 12 is unusable outside the first time period 23 at the first destination 25 and outside the second time period 27 at the second destination 29. It is also possible for the card user 17 to set the parameter 16b so that the sequence of using the card 12 is restricted. The user may prevents the use of the card 12 a second time 35 at the first destination 25 without first using the card 12 at the second destination 29. In other words, it is not possible to use the card 12 twice in a row at the first destination 25. The user 17 may also specify which day 31 or days of the week 33 the card is usable so that the card 12 is unusable on days other than the day or days 31. For example, the card 12 may be set to only be. usable during the weekend. As indicated earlier, the financial institution 14 may form an agreement 37 with a commercial entity 39, such as a conventional store, to permit the entity 39 to withdraw money from a bank account 41 of the card user 17 when the card 12 is used for withdrawing cash from the entity 39. It may also be possible for the financial institution to require the card user 17 to use the card 12 a minimum amount 43 of times during the time period 23 to prevent inactivation of the card 12 or to prevent the loss of certain card privileges . The financial institution 14 may design the card 12 so that the card 12 sends a real time signal 45 to the financial institution 14 when the card 12 is used at the first destination 25. The real time signal 45 of the card 12 may be compared to a real time 47 of a database 46 at the first destination 25. Other restrictions to the use of the card 12 may be added by both the cardholder 17 and the financial institution 14. In this way the user may control which ports are open and closed going into the database and in which order the ports must be passed. This information may also be built into a chip. The use of chip technology may also reduce the load on the bank's computer system if the chip rejects incorrect information sent by the user of the card. The method of the present invention may also be used to control illegal or unauthorized use of mobile telephones and the purchase and use of TV channels. The dynamic security code of the present invention also reduces the risk of skimming i.e. the unauthorized reading and copying of the information of the card 12 since the use of the card is restricted.

While the present invention has been described in accordance with preferred compositions and embodiments, it is to be understood that certain substitutions and alterations may be made thereto without departing from the spirit and scope of the following claims .

Claims

I claim :

1. A method of using a financial card, comprising: a financial institution setting 14 up validity parameters 16a for a financial card 12 that determines permissible electronic usage of the card 12 by a card user 17; the card user 17 setting up preferred validity parameters 16b; and the parameters 16b having time period variables 22 for specifying a first time period 23 when the card 12 is usable, the card 12 being unusable outside the first time period 23.

2. The method according to claim 1 wherein the method further comprising the variables 22 specifying the first time period 23 at a first destination 25 and specifying a second time period 27 at a second destination 29, the card 12 being unusable outside the first time period 23 at the first destination 25 and outside the second time period 27 at the second destination 29.

3. The method according to claim 2 wherein the method further comprises the parameter 16 prevents the use of the card 12 a second time 35 at the first destination 25 without first using the card 12 at the second destination 29.

4. The method according to claim 1 wherein the method further comprises the variables 22 specifying a day 31 of a week 33 the card 12 is usable, the card 12 being unusable on days other than the day 31.

5. The method according to claim 1 wherein the method further comprises the financial institution 14 forming an agreement 37 with a commercial entity 39 to permit the entity 39 to withdraw money from a bank account 41 of the card user 17 when the card 12 is used for withdrawing cash from the entity 39.

6. The method according to claim 1 wherein the method further comprises requiring the card user 17 to use the card 12 a minimum amount 41 of times during the time period 23 to prevent inactivation of the card 12.

7. The method according to claim 2 wherein the method further comprises requiring use of the card 12 at the first destination 25 before the card 12 is used at the second destination 29.

8. The method according to claim 1 wherein the method further comprises the card 12 sending a real time signal 43 to the financial institution 14 when the card 12 is used at the first destination 25, the real time signal 43 of the card 12 being compared to a real time 45 of a database 46 at the first destination 25.