System and method for encoding information in magnetic stripe format for use in radio frequency identification transactions

Abstract

A transaction device system is associated with a transaction device proxy account identifier, which may be stored in a database on the transaction device system. The proxy transaction device identifier may be stored on the database in any conventional merchant recognizable format. Additionally, the proxy transaction device identifier may be associated with a transaction account identifier for use in completing a transaction. The proxy transaction device identifier may include at least a first portion which corresponds to a portion of the transaction device identifier. The first portion of the proxy transaction device identifier may be segmented into proxy fields where a first segment includes a portion of a transaction account data set, and a second segment has encoded therein an account provider desired information. The proxy account identifier segments are undetectable by receiving systems such that the proxy account identifier emulates a merchant recognizable data transfer format. The account provider system may receive the proxy account identifier and uses the first portion of the transaction device identifier in a predetermined algorithm to reassemble the transaction device identifier for use in transaction completion.

Description

RELATED APPLICATIONS[0001]This invention is a continuation of, and claims priority to, U.S. patent application Ser. No. 10 / 810,473, entitled “SYSTEM AND METHOD FOR ENCODING INFORMATION IN MAGNETIC STRIPE FORMAT FOR USE IN RADIO FREQUENCY IDENTIFICATION TRANSACTIONS,” filed on Mar. 26, 2004. The '473 invention is a continuation-in-part of, and claims priority to U.S. Pat. No. 7,239,226, entitled “SYSTEM AND METHOD FOR PAYMENT USING RADIO FREQUENCY IDENTIFICATION IN CONTACT AND CONTACTLESS TRANSACTIONS,” issued on Jul. 3, 2007 (aka U.S. patent application Ser. No. 10 / 192,488, filed on Jul. 9, 2002), which itself claims priority to U.S. Provisional Patent Application No. 60 / 304,216, filed Jul. 10, 2001. The '473 invention is also a continuation-in-part of and claims priority to U.S. patent application Ser. No. 10 / 340,352, entitled “AUTHORIZING PAYMENT SUBSEQUENT TO RF TRANSACTIONS,” filed Jan. 10, 2003, which itself claims priority to U.S. Provisional Patent Application No. 60 / 396,577,...

AI Technical Summary

Benefits of technology

"The patent describes a system and method for securing a transaction using a proxy transaction account identifier stored in the database of a transaction device. The customer transaction account data is encrypted and sent to the transaction account provider in a reduced space requirement. The proxy account identifier may include various data relevant to the account, such as the account expiration date, account identifier, and secondary security code. The transaction account provider recalculates the cryptogram and verifies the portion of the cryptogram with the portions of the account data. The proxy account identifier may be any suitable data transmission recognizable by the merchant system. The system also includes a transponder system for using RFID technology to initiate and complete financial transactions. The RFID reader may interrogate the transponder and the RFID authentication circuit verifies the transponder and the RFID reader are authorized to operate within the transponder-reader payment system. The system may further include a RFID-ready terminal and a transponder in various forms such as a fob, tag, card, or wristwatch."

Problems solved by technology

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 to correlate the fob identification data to a customer account prior to providing the accompanying transaction request to the merchant POS for completion.

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