Self verifying transaction card with disabling capability

#This invention relates to verification of proper usage by both card-holders and merchants of transaction cards and particularly to self verification cards.

#Current widely used transaction cards such as the credit cards under the names Visa, Mastercard, American Express, Discovery and the like are comprised of plastic with embossed information, i.e. cardholder name, transaction card number and expiration date. Each card also has a signature strip and a magnetic tape strip for verification information. In their wide proliferation, credit cards represent several security risks, entailing millions of dollars in losses because of improper or unauthorized use. Two major categories of improper use are counterfeiting and the use of stolen cards. To obviate the successful counterfeiting of such cards it has currently become the practice to include holograms on the card to render counterfeiting more difficult. In order to alleviate the financial burden of stolen credit cards a cardholder's liability is by law limited, generally to a maximum of $50, and if the credit card issuing financial institution is informed within 24 hours of loss there is no liability to the cardholder. In any event, the financial institutions are suffering unrecompensated losses in the tens and possibly of millions of dollars per year. There is accordingly a great deal of effort currently being expended in enhancing the security of credit card transactions. These efforts have centered upon verification of the card holder as the person authorized to utilize the card. Generally this has been accomplished by issuing the card holder of PIN (personal identification number) which is encoded on the magnetic strip of the card but which is otherwise not evident on the face of the card. Such PIN identification has been most widely utilized in conjunction with automated teller machines (ATM's) which are programmed to be operable by an inserted card with an appropriate PIN which it reads from the magnetic tape. While this security system has, for the most part, been successful it is not a viable one for general credit card transactions since ti involves the necessity of providing every merchant who accepts the card with PIN accepting and card reading devices, a clearly uneconomic alternative. Many of the current security developments require similar interfacing of a transaction card with external devices for verification of the card holder's authority to use the card with the same economical and logistic drawbacks.

#Self contained identification cards have been developed such as described in U.S. Pat. Nos. 4,692,601 and 4,697,072 wherein the cards have keyboards for the external entry of secret data or codes which in turn cause the visual display of an approval code or number which verifies a transaction. An improper entry results in no verification being displayed. In U.S. Pat. No. 4,879,455 simple LED's light up to signify whether the car is to be accepted or rejected.

#These and other objects, features and advantages of the present invention will become more evident from the following discussion and the drawings in which:

#FIG. 1 is a front view of the transaction card of the present invention;

#FIG. 2 is a rear view of the transaction card of FIG. 1;

#Generally the present invention comprises a self verifying transaction card having self contained means for entering a personal identification code, a non-volatile memory with the stored code, a self contained power supply, and a verification display comprised of light emitting diodes (LED's). The LED display provides the important economic advantage of a simplified lighting circuit without the necessity for the logic circuitry such as is required by an LCD display, as in the aforementioned patents, which are designed to exhibit various alphanumeric characters. As opposed to LCD displays, the LED's are also optically scannable and can transmit information by a modulated blinking pattern. The blinking also serves to conserve battery power. The card further contains circuitry for comparison of an entry with the stored code. A pre-determined successive number of improper entries within a specific time period causes disabling means to disable the card from further identification functions and transactions. A valid entry activates the LED's in a predetermined configuration for a sort time period sufficient to indicate a valid card holder. The configuration is noted on a transaction record to complete the verification procedure. The card also contains clock/calendar timing means whereby the verification function is disabled at the expiration date of the card. The clock/calendar timing means provides means for uniquely changing the verification configuration to a predetermined alphanumeric configuration based on the time and date of the transaction relative to the time and date of activation of the card. By providing a unique undeterminable verification configuration, unscrupulous merchants are prevented from submitting fraudulent transaction since they cannot also provide a proper verification code for the specific card.

#The card of the present invention is constructed of embossed plastic in a manner similar to those of the common transaction cards and it can in fact be similarly utilized. Front and rear plastic layers sandwich electrical circuitry and a power supply therebetween and are peripherally sealed to each other to provide a substantially hermetic closure. The power supply is a thin wafer battery preferably a non-aqueous lithium battery (with high capacity and without detrimental gassing). The card embodies a membrane type keyboard with alpha, numeric or alpha-numeric characters, as desired, for the entry of a predetermined personal identification code such as a three or four digit number. In order to prevent a random determination of a numerical code, the circuitry within the card of the present invention contains a comparator and timer circuit which upon the entry of a successive pre-determined number of incorrect entries within a specific time period instructs disabling means to deactivate the card from any further use, whether or not. Upon proper activation of the identification function, i.e. a match within the comparator circuit, one or more LED's with a distinctive time and date/predetermined configuration lights up. A record is made of such configuration with the time and date of a transaction in order to verify that identification, with card use authorization, was properly made prior to any card transaction and that the transaction was a valid one. The card of the present invention further includes a signature strip and the ubiquitous magnetic strip for read/write card storage information whereby the card can be compatible with existing transaction card verification and record keeping. In alternative embodiments the LED display flashes to indicate that a key has been depressed.

#An example of the non-volatile memory and comparator circuitry for the card of the present invention include the relatively low cost single chip CMOS microcontrollers from National Semiconductor Corporation designated COP410C, COP411C, COP310C and COP311C.