`
`US 20040236632A1
`
`(19) United States
`(12) Patent Application Publication (10) Pub. No.: US 2004/0236632 A1
`(43) Pub. Date: NOV. 25, 2004
`
`Maritzen et al.
`
`(54) SYSTEM AND METHOD FOR CONDUCING
`FINANCIAL TRANSACTIONS USING A
`PERSONAL TRANSACTION DEVICE WITH
`VEHICLE-ACCESSED, PAYMENT-GATEWAY
`TERMINALS
`
`(76)
`
`Inventors: Michael L. Maritzen, Fremont, CA
`(US); Hiro Yasuda, Woodcliff Lake, NJ
`(US); Robert Tanner, Boulder Creek,
`CA (US); Harold Aaron Ludtke, San
`Jose, CA (US)
`
`Correspondence Address:
`Rogitz & Associates
`750 B Street, Suite 3120
`San Diego, CA 92101 (US)
`
`(21) Appl. No.:
`
`10/015,724
`
`(22) Filed:
`
`Dec. 6, 2001
`
`Related US. Application Data
`
`(60) Provisional application No. 60/254,217, filed on Dec.
`7, 2000.
`
`Publication Classification
`
`Int. Cl.7 ..................................................... G06F 17/60
`(51)
`(52) US. Cl.
`................................................................ 705/26
`
`(57)
`
`ABSTRACT
`
`A system and method for conducting a financial transaction
`are described. In one embodiment, communication is estab-
`lished between a vehicle-accessed, payment-gateway termi-
`nal (VAPGT) and a pre-registered, key-enabled, personal
`transaction device (PTD). The PTD is accessed using a
`privacy card and a transaction request is transmitted to a
`server. Further, a transaction authorization message is
`received from the server to complete the transaction.
`
`In an alternate embodiment, a pre-registered, key-enabled,
`personal transaction device (PTD) is loaded with a pre-
`funded cash account. Further, communication is established
`between a vehicle-accessed, payment-gateway terminal
`(VAPGT) and the PTD and the PTD is accessed using a
`privacy card. Finally, a transaction amount is deducted from
`the pre-funded cash account to complete the transaction.
`
`
`
`V
`
`fl
`(
`Start
`)
`
`I
`Registering A Personal Transaction Device (PTD)
`y
`
`Establishing Communication Between the PTD and a Vehicle- (\J
`
`Accessed, Payment Gateway Terminal (VAPGT)
`i
`I 115
`
`Transmitting A Payment Request To The PTD W
`
`1
`120
`
`Accessmg the PTD Using A Biometric Control N
`
`i
`’ 125
`
`I
`Generating A Transaction Key
`N
`
`t
`1 130
`
`Transmitting The Transaction Key To The VAPGT W
`
`V
`’ 135
`
`Generating A Transaction Request
`1 140
`y
`, Transmitting The Transaction Request To A Clearing House /\-/
`V
`’ 145
`Verifying The Transaction Request
`N
`
`1 105
`
`’ 110
`
`
`
`
`
`
`
`
`
`
`V
`Transmitting An Invalid-
`Transaction Messaqe
`1180
`\f\
`{Notifying Appropriate Authorities
`
`1 185
`V
`R Disabling The PTD
`
`I
`
`/\ 1150
`Yes
`// Valid
`——<wsaction7
`‘
`\
`
`V
`1 155
`
`Selecting An Account
`1/ “
`
`
`V
`1 160
`Negotiating With A Financial (x/
`Processor
`1 165
`I
`7
`Deducting A Transaction
`Amount
`
`Transmitting A Transaction
`Authorization Messaqe
`
`
`
`
`
`
`VISA — EXHIBIT 1114
`
`VISA - EXHIBIT 1114
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 1 0f 17
`
`US 2004/0236632 A1
`
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`Patent Application Publication Nov. 25, 2004 Sheet 2 0f 17
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`340
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`
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`
`
`Transaction Key
`
`
`
`Patent Application Publication Nov. 25, 2004 Sheet 3 0f 17
`
`US 2004/0236632 A1
`
`
`
`Non-Volatile Memory
`
`VAPGT Application
`
`
`
`Biometric Key
`
`240
`
`Figure 3
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 4 0f 17
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`Patent Application Publication Nov. 25, 2004 Sheet 5 0f 17
`
`US 2004/0236632 A1
`
`VAPGT Memory
`
`
`
`510
`
`530
`
`5’40
`
`550
`
`Payment Request
`
`
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`
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`
`Transaction
`
`Request
`
`
`
`560
`
`VAPGT Transaction Key
`
`
`
`115
`
`Figure 5
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 6 0f 17
`
`US 2004/0236632 A1
`
`610
`
`650
`
`640
`
`660
`
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`

`

`Patent Application Publication Nov. 25, 2004 Sheet 7 0f 17
`
`US 2004/0236632 A1
`
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`

`Patent Application Publication Nov. 25, 2004 Sheet 8 0f 17
`
`US 2004/0236632 A1
`
`User Area
`
`User Account Information
`
`
`
`User Keys
`
`
`
`
`
`User Certificates and Profiles
`
`
`
`Historical Transaction Events
`
`
`
`Pre-established Biometric Key
`
`880
`
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`
`

`

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`
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`
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`
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`
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`
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`
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`
`1030
`
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`
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`m
`
`1950
`
`1000
`\/'\
`
`
`
`m Transaction Authorization Message
`
`890
`
`Figure 10
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 10 0f 17
`
`US 2004/0236632 A1
`
`\
`
`1105
`
`Start;
`
`
`Registering A Personal Transaction Device (PTD) N
`
`i
`1 1 1
`Establishing Communication Between the PTD and a Vehicle-
`Accessed, Payment GatewayfirminaleAPGT)
`
`1115
`y
`Transmitting A Payment Request To The PTD N
`'—
`
`
`*
`1 120
`Accessing the PTD Using A Biometric Control N
`
`
`y
`1125
`Generating A Transaction Key
`N
`
`
`r
`1 130
`Transmitting The Transaction Key To The VAPGT N
`
`
`y
`1135
`Generating A Transaction Request
`W
`
`
`T
`1 140
`
`X Transmitting The Transaction Request To A Clearing House N
`t
`1 145
`Verifying The Transaction Request
`
`N
`i
`
`
`N
`
`
`
`
`
`
`Valid
`ransaction'?
`
`
`
`_Y_
`
`
`Transmitting An Invalid-
`Selecting An Account
`
`
`1 180
`Transaction Message
`
`_{
`1160
`\f\
`
`
`V
`Negotiating With A Financial
`Processor N 1 1 85
`Notifying Appropriate Authorities i
`
`i
`1165
`V
`Deducting A Transaction N R Disabling The pm
`i
`
`Amiunt
`1 170
`Transmitting A Transaction KT/
`
`Authorization Message
`
`Figure 11
`
`

`

`1215
`l
`Accessing the PTD Using A Biometric Control
`
`
`
`
`1220
`
`
`Receiving A Transaction Authorization
`
`Patent Application Publication Nov. 25, 2004 Sheet 11 0f 17
`
`US 2004/0236632 A1
`
`
`
`Establishing Communication Between A Pre-Registered, Key-
`Enabled, Personal Transaction Device (PTD) and a Vehicle-
`Accessed, Payment Gateway Terminal (VAPGT)
`
`
`
`Transmitting A Transaction Request To A Clearing House
`
`End
`
`‘-
`
`Figure 12
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 12 0f 17
`
`US 2004/0236632 A1
`
`
`
`1310
`
`Establishing Communication Between A Pre—Registered, Key-
`Enabled, Personal Transaction Device (PTD) and a Vehicle-
`Accessed, Payment Gateway Terminal (VAPGT)
`
`
`
`
`l
`
`1315
`
`Accessing the PTD Using A Biometric Control
`
`
`Transmitting A Transaction Key To The VAPGT N
`
`
`
`1320
`
`End
`
`1
`
`Figure 13
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 13 0f 17
`
`US 2004/0236632 A1
`
`
`
`1410
`Establishing Communication Between A Pre-Registered, Key- N
`Enabled, Personal Transaction Device (PTD) and a Vehicle-
`Accessed, Payment Gateway Terminal (VAPGT)
`
`
`
`l—_
`
`Receiving A Transaction Key From The PTD
`
`1415
`
`N
`
`1420
`Transmitting A Transaction Request To A Clearing House N
`
`l
`
`i
`
`1425
`
`Receiving A Transaction Authorization From The Clearing
`House
`
`
`(
`
`End
`
`Figure 14
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 14 0f 17
`
`US 2004/0236632 A1
`
`1510
`
`Receiving A Transaction Request
`
`1515
`
` T
`
`Determining If A Transaction ls Valid
`
`
`
`Transaction?
`
` Negotiating With A
`
`Financial Processor
`
`N
`
` l
`
` Valid
`
`
`
`
`
`Transmitting A
`Transaction Authorization
`
`Figure 15
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 15 0f 17
`
`US 2004/0236632 A1
`
`
`
`1605
`
`
`
`Registering A Personal Transaction Device (PTD)
`1610
`
`
`
`
`
`Loading The PTD With A Pre-Funded Cash Account
`1615
`Establishing Communication With AVehicle-Accessed,
`
`Pa ment-Gatewa Terminal VAPGT
`
`1620
`
`
`
`
`Accessing The PTD Using A Biometric Control
`1625
`1
`Transmitting A Transaction Request To The PTD
`
`1630
`
`Determining If A Transaction ls Valid
`
` Valid
`
`1 635
`
`
`ransaction')
`
`
`
`
` 1640
`
`Transmitting An Invalid-
`Deducting A Transaction {x/
`
`
`1655
`Transaction Messaoe
`Amount
`
`\/\
`
`1645
`Transmitting A Transaction N
`Authorization
`
`i Notifying Appropriate Authorities
`
`1660
`
`Disabling The PTD
`
`
`
`
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 16 of 17
`
`US 2004/0236632 A1
`
`
`
`Loading A Pre-Registered, Key-Enabled, Personal Transaction
`Device (PTD) With A Pre-Funded Cash Account
`
`1715
`
`Establishing Communication Between The PTD and a Vehicle-
`Accessed, Payment Gateway Terminal (VAPGT)
`
`v————l‘————— 1720
`
`
`
`Accessing The PTD Using A Biometric Control N
`
`1725
`Deducting A Transaction Amount From The Pre-Funded Cash /-\/
`Account
`
`'
`
`
`
`Figure 17
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 17 0f 17
`
`US 2004/0236632 A1
`
`1810
`Establishing Communication Between A Pre-Registered, Key— (V
`Enabled, Personal Transaction Device (PTD) and a Vehicle— !
`Accessed, Payment Gateway Terminal (VAPGT)
`
`
`
`
`
`
`
`
`1815
`
`Receiving A Transaction Authorization Message From The
`PTD
`
`_
`
`
`
`Figure 18
`
`

`

`US 2004/0236632 A1
`
`Nov. 25, 2004
`
`SYSTEM AND METHOD FOR CONDUCING
`FINANCIAL TRANSACTIONS USING A
`PERSONAL TRANSACTION DEVICE WITH
`VEHICLE-ACCESSED, PAYMENT-GATEWAY
`TERMINALS
`
`RELATED APPLICATIONS
`
`[0001] The present application claims the benefit of US.
`Provisional Patent Application Ser. No. 60/254,217, filed on
`Dec. 07, 2000, and entitled “METHOD AND APPARATUS
`FOR PRIVATE/ANONYMOUS WIRELESS, AUTO-
`MATED PAYMENT AND SETTLEMENT OF TOLLS,
`FEES, SERVICE CHARGES AND RELATED FOR
`VEHICLES IN REAL-TIME AT A TOLLBOOTH SMOG
`CERTIFICATION STATION AND SIMILAR KIOSK
`ENABLED VIA A PKI-BASED BIOMETRIC IDENTI-
`
`FIER” which is herein incorporated by reference in its
`entirety.
`
`FIELD OF THE INVENTION
`
`[0002] The present invention relates generally to conduct-
`ing financial transactions, and, more particularly, to a system
`and method to conduct financial transactions with a personal
`transaction device at vehicle-accessed, payment-gateway
`terminals.
`
`BACKGROUND OF THE INVENTION
`
`[0003] With the introduction of credit cards and pre-paid
`cash cards, society has moved from a cash-based to a
`cash-free society. However,
`there are still situations that
`require the use of cash to carry out financial transactions. A
`situation that still requires use of cash is in the collection of
`fees at vehicle-accessed payment gateways such as toll-
`booths, vehicular kiosks, smog-certification stations, and the
`like. The collection of fees at these gateways is time con-
`suming and subject to fraud.
`
`[0004] Systems for the electronic payment of fees at
`payment gateways have been developed using fixed sensors
`interacting remotely with devices carried by passing
`vehicles or persons. Such systems incorporate, for example,
`a pre-paid token or card in the devices in which the fee is
`deducted from the device.
`
`[0005] These systems offer anonymity but are inflexible as
`a device needs to be purchased for each specific financial
`transaction to be conducted. In addition, the financial trans-
`actions are insecure and are not fund-transfer transactions. In
`
`addition, these systems do not offer real-time settlement of
`transactions. Finally, if the device is stolen, the funds may be
`used by anyone in possession of the device.
`
`[0006] What is required is a system and method for the
`real-time settlement of vehicle-accessed, financial transac-
`tions that provide anonymity and security.
`
`SUMMARY OF THE INVENTION
`
`[0007] A system and method for conducting a financial
`transaction are described. In one embodiment, communica-
`tion is established between a vehicle-accessed, payment-
`gateway terminal (VAPGT) and a pre-registered, key-en-
`abled, personal
`transaction device (PTD). The PTD is
`accessed using a privacy card and a transaction request is
`
`transmitted to a server. Further, a transaction authorization
`message is received from the server to complete the trans-
`action.
`
`In an alternate embodiment, a pre-registered, key-
`[0008]
`enabled, personal transaction device (PTD) is loaded with a
`pre-funded cash account. Further, communication is estab-
`lished between a vehicle-accessed, payment-gateway termi-
`nal (VAPGT) and the PTD and the PTD is accessed using a
`privacy card. Finally, a transaction amount is deducted from
`the pre-funded cash account to complete the transaction.
`
`[0009] Other features and advantages of the present inven-
`tion will be apparent from the accompanying drawings and
`from the detailed description that follows.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`:0010] Features and advantages of the present invention
`will be apparent to one skilled in the art
`in light of the
`following detailed description in which:
`
`:0011] FIG. 1 is a block diagram of one embodiment for
`a financial transaction system;
`
`:0012] FIG. 2 is a block diagram for one embodiment of
`an architecture for a personal transaction device;
`
`:0013] FIG. 3 is a block diagram for one embodiment of
`a non-volatile memory for FIG. 2;
`
`:0014] FIG. 4 is a block diagram for one embodiment of
`a privacy card for FIG. 1;
`
`:0015] FIG. 5 is a block diagram for one embodiment of
`PTD memory of FIG. 4;
`
`:0016] FIGS. 6a and 6b are examples of a personal
`transaction device with integrated privacy card;
`
`:0017]
`
`FIG. 7 is an example of a privacy card;
`
`
`
`:0018] FIG. 8 is a block diagram for one embodiment of
`an architecture for a clearing house for FIG. 1;
`
`:0019] FIG. 9 is a block diagram for one embodiment of
`a user area of FIG. 8;
`
`:0020] FIG. 10 is a block diagram for one embodiment of
`a transaction area of FIG. 8;
`
`:0021] FIG. 11 is a flow diagram for one embodiment of
`a method for conducting a financial transaction;
`
`:0022] FIG. 12 is a flow diagram for a second embodi-
`ment of a method for conducting a financial transaction by
`a personal transaction device;
`
`:0023] FIG. 13 is a flow diagram for one embodiment of
`a method for conducting a financial transaction by a personal
`transaction device;
`
`:0024] FIG. 14 is a flow diagram for one embodiment of
`a method for conducting a financial transaction by a vehicle-
`accessed, payment gateway terminal;
`
`:0025] FIG. 15 is a flow diagram for one embodiment of
`a method for conducting a financial transaction by a clearing
`house;
`
`:0026] FIG. 16 is a flow diagram for a third embodiment
`of a method for conducting a financial transaction;
`
`

`

`US 2004/0236632 A1
`
`Nov. 25, 2004
`
`[0027] FIG. 17 is a flow diagram for a fourth embodiment
`of a method for conducting a financial transaction; and
`
`[0028] FIG. 18 is a flow diagram for a second embodi-
`ment of a method for conducting a financial transaction by
`a vehicle-accessed, payment gateway terminal.
`DETAILED DESCRIPTION
`
`[0029] A system and method for conducting a financial
`transaction are described. In one embodiment, communica-
`tion is established between a vehicle-accessed, payment-
`gateway terminal (VAPGT) and a pre-registered, key-en-
`abled, personal
`transaction device (PTD). The PTD is
`accessed using a biometric control and a transaction request
`is transmitted to a server. Further, a transaction authorization
`message is received from the server to complete the trans-
`action in real time between the user and the VAPGT pro-
`vider. In this embodiment, the funds are uniquely identified
`with the owner of the PTD and, thus, if the PTD is stolen,
`the funds cannot be used by another user.
`
`In an alternate embodiment, a pre-registered, key-
`[0030]
`enabled, personal transaction device (PTD) is loaded with a
`pre-funded cash account. Further, communication is estab-
`lished between a vehicle-accessed, payment-gateway termi-
`nal (VAPGT) and the PTD and the PTD is accessed using a
`biometric control. Finally, a transaction amount is deducted
`from the pre-funded cash account to complete the transac-
`tion in real time between the user and the VAPGT provider.
`In this embodiment, the fiinds are uniquely identified with
`the owner of the PTD and, thus, if the PTD is stolen, the
`funds cannot be used by another user.
`
`[0031] The embodiments described herein provide for
`secure, anonymous, real time settlement of financial trans-
`actions. In addition, the embodiments provide consistency
`and commonality in the key stages of the financial transac-
`tion capturing and processing lifecycle. This may provide in
`a cost reduction in the physical hardware required by
`eliminating some components from the current vehicle-
`based communication system by consolidating the compo-
`nents into the PTD. For example, reducing the need for
`separate tollbooth payment tokens within the vehicle. In
`addition, the embodiments may provide for consistent levels
`of security and other services across multiple payment
`gateways by use of a common transaction service provider.
`Also, the embodiments may provide strong integration with
`a user’s devices and other utilities such as, for example,
`financial reporting tools such as tax preparation, expense
`report generation, and the like.
`
`[0032] Aportion of the disclosure of this patent document
`contains material which is subject to copyright protection.
`The copyright owner has no objection to the facsimile
`reproduction by anyone of the patent document or the patent
`disclosure, as it appears in the Patent and Trademark Office
`patent file or records, but otherwise reserves all copyright
`rights whatsoever.
`
`In the following detailed description of the present
`[0033]
`invention, numerous specific details are set forth in order to
`provide a thorough understanding of the present invention.
`However, it will be apparent to one skilled in the art that the
`present invention may be practiced without these specific
`details.
`In some instances, well-known structures and
`devices are shown in block diagram form, rather than in
`detail, in order to avoid obscuring the present invention.
`
`[0034] Some portions of the detailed descriptions which
`follow are presented in terms of algorithms and symbolic
`representations of operations on data bits within a computer
`memory. These algorithmic descriptions and representations
`are the means used by those skilled in the data processing
`arts to most effectively convey the substance of their work
`to others skilled in the art. An algorithm is here, and
`generally, conceived to be a self-consistent sequence of steps
`leading to a desired result. The steps are those requiring
`physical manipulations of physical quantities. Usually,
`though not necessarily, these quantities take the form of
`electrical or magnetic signals capable of being stored, trans-
`ferred, combined, compared, and otherwise manipulated. It
`has proven convenient at times, principally for reasons of
`common usage,
`to refer to these signals as bits, values,
`elements, symbols, characters, terms, numbers, or the like.
`
`It should be borne in mind, however, that all of
`[0035]
`these and similar terms are to be associated with the appro-
`priate physical quantities and are merely convenient labels
`applied to these quantities. Unless specifically stated other-
`wise as apparent from the following discussion, it is appre-
`ciated that throughout the description, discussions utilizing
`terms such as “processing” or “computing” or “calculating”
`or “determining” or “displaying” or the like, refer to the
`action and processes of a computer system, or similar
`electronic computing device, that manipulates and trans-
`forms data represented as physical (electronic) quantities
`within the computer system’s registers and memories into
`other data similarly represented as physical quantities within
`the computer system memories or registers or other such
`information storage, transmission or display devices.
`
`[0036] The present invention also relates to apparatus for
`performing the operations herein. This apparatus may be
`specially constructed for the required purposes, or it may
`comprise a general purpose computer selectively activated
`or reconfigured by a computer program stored in the com-
`puter. Such a computer program may be stored in a computer
`readable storage medium, such as, but is not limited to, any
`type of disk including floppy disks, optical disks, CD-
`ROMs, and magnetic-optical disks, read-only memories
`(ROMS),
`random access memories (RAMs), EPROMs,
`EEPROMs, magnetic or optical cards, or any type of media
`suitable for storing electronic instructions, and each coupled
`to a computer system bus.
`
`[0037] The algorithms and displays presented herein are
`not inherently related to any particular computer or other
`apparatus. Various general purpose systems may be used
`with programs in accordance with the teachings herein, or it
`may prove convenient to construct more specialized appa-
`ratus to perform the required method steps. The required
`structure for a variety of these systems will appear from the
`description below. In addition, the present invention is not
`described with reference to any particular programming
`language. It will be appreciated that a variety of program-
`ming languages may be used to implement the teachings of
`the invention as described herein.
`
`[0038] FIG. 1 is a block diagram of one embodiment for
`a financial transaction system 180. Referring to FIG. 1, a
`personal transaction device (PTD) 100 communicates via
`communication link 150 with a vehicle-accessed, payment-
`gateway terminal (VAPGT) 120 to conduct a financial
`transaction. In one embodiment,
`the PTD 100 is a pre-
`
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`Nov. 25, 2004
`
`registered, key-enabled, personal transaction device. In one
`embodiment, PTD 100 is a public-key infrastructure (PKI)
`enabled device. In one embodiment, PTD 100 is registered
`with an appropriate enabling authority prior to initiation of
`the financial transaction. The appropriate enabling authority
`may be, for example, a financial institution, a third party
`distributor, a credit card issuer, or the like. In one embodi-
`ment, PTD 100 is associated with a particular user such that
`only the particular user may access PTD 100 and conduct the
`financial transaction using PTD 100. Alternatively, a number
`of users may use PTD 100, each user having a unique
`biometric key associated with the user and PTD 100.
`
`[0039] VAPGT 120 may be any vehicle-accessed terminal
`such as, for example, a tollbooth, a vehicular kiosk, a
`ticket-booth, a smog-certification station, or the like. In one
`embodiment, VAPGT 120 includes VAPGT memory 115 for
`the storage of financial transaction data such as, for example,
`a payment request and a transaction request. VAPGT 120
`communicates Via communication link 160 with clearing
`house 130. Clearing house 130 may be any appropriate
`server. Clearing house 130 communicates via communica-
`tion link 170 with financial processor 140. In one embodi-
`ment, PTD 100 is connected to privacy card 110. In one
`embodiment, PTD 100 and privacy card 110 may be within
`the same device. In an alternate embodiment, PTD 100 and
`privacy card 110 may be separate devices that are connected
`by any suitable means. In this alternate embodiment, PTD
`100 and privacy card 110 may be connected Via a hardwired
`connection. Alternatively PTD 100 and privacy card 110
`may communicate via a wireless connection. In one embodi-
`ment, privacy card 110 may be fully integrated into PTD
`100.
`
`[0040] Transmission via communication link 150 may be
`via wireless communication such as, for example, Blue-
`tooth, infrared, wireless LAN, or the like. VAPGT 120 may
`be connected to clearing house 130 Via a hardwired com-
`munication link such as, for example, a virtual private
`network (VPN), telephone connection, wide area network
`(WAN) or the like. Alternatively, VAPGT 120 and clearing
`house 130 may be connected via a wireless communication
`link such as, for example, a mobile telecommunications link,
`a radio communications link, an infrared link, a satellite link,
`a wireless WAN link, or the like.
`In one embodiment,
`VAPGT 120 and clearing house 130 are remotely connected.
`
`[0041] As PTD 100 nears VAPGT 120, the proximity of
`PTD 100 to VAPGT 120 is recognized. In one embodiment,
`VAPGT 120 may sense the proximity of PTD 100 and
`initiate communication with the PTD 100. In an alternate
`
`embodiment, PTD 100 may sense the proximity of VAPGT
`120 and initiate communication with VAPGT 120. Any of a
`variety of well-known methods for sensing the proximity of
`the two devices may be used. For example, VAPGT 120 may
`periodically poll
`the surrounding area to determine the
`proximity of a PTD 100.
`
`[0042] To conduct a financial transaction, once the PTD
`100 and VAPGT 120 are within proximity to each other,
`VAPGT 120 sends a payment request Via communication
`link 150 to PTD 100. In one embodiment,
`the payment
`request may include a transaction type,
`a
`transaction
`amount, and a VAPGT identifier. Alternatively, any suitable
`information may be included in the payment request. Once
`PTD 100 receives the payment request from VAPGT 120,
`
`the user accesses privacy card 110 to access PTD 100. In an
`alternate embodiment, a user may access privacy card 110
`prior
`to the initiation of the financial
`transaction. For
`example, the user may access privacy card 110 to enter a
`vehicle or to start the vehicle.
`
`In one embodiment, privacy card 110 is a biometric
`[0043]
`control. Asuitable biometric control device that may be used
`is described in US. patent application Ser. No. 09/610,811
`entitled “Method of Using Personal Device With Internal
`Biometric In Conducting Transactions Over A Networ ”,
`which is herein incorporated by reference. In one embodi-
`ment, the user accesses privacy card 110 using a finger or
`thumbprint
`input. Alternatively, any means of biometric
`access may be used. Privacy card 110 uses the biometric
`input to verify the user of the device. Only a registered user
`may access PTD 100 Via privacy card 110.
`
`In one embodiment, if the biometric input is valid
`[0044]
`for the device, privacy card 110 creates a biometric key that
`is transmitted to PTD 100. If privacy card 110 is within PTD
`100, validation of the biometric information may be con-
`ducted by PTD 100. Alternatively, if privacy card 110 is
`separate from PTD 100, validation is conducted by privacy
`card 110. Privacy card 110 only transmits the biometric key.
`The biometric information identifying the user is not trans-
`mitted at any time. The biometric key is used to unlock PTD
`100 and to gain authorization of the financial transaction.
`
`In one embodiment, the biometric key is encrypted
`[0045]
`using well-known encryption technology such as,
`for
`example, PKI encryption. If the biometric key is valid, PTD
`100 creates a transaction key. In one embodiment,
`the
`transaction key may include the biometric key and a PTD
`identifier. The PTD identifier identifies the particular PTD
`being used. In an alternate embodiment, the transaction key
`includes only the biometric key. In one embodiment, PTD
`100 transmits the transaction key via communication link
`150 to VAPGT 120. PTD 100 does not transmit any user
`information to VAPGT 120. In one embodiment, the trans-
`action key is encrypted prior to transmission using standard
`encrypting methods such as, for example, public key infra-
`structure (PKI) encryption.
`
`[0046] Once VAPGT 120 receives the transaction key,
`VAPGT 120 generates a transaction request. In one embodi-
`ment, the transaction request includes the transaction key, a
`transaction amount, a transaction type, and a terminal iden-
`tifier. The terminal identifier identifies a particular VAPGT
`120. In alternate embodiments, the transaction request may
`include other information. The transaction request is trais-
`mitted via communication link 160 to clearing house 130. In
`one embodiment, the transaction request may be encryp ed
`using well-known encrypting methods such as, for example,
`PKI encryption.
`
`[0047] Clearing house 130 determines if the transact'on
`type is valid for a particular user.
`In one embodiment,
`clearing house 130 decrypts the transaction request and, if
`required, the transaction key. In one embodiment, clear'ng
`house 130 determines if the transaction type is consistent
`with historical transaction events conducted by the user. In
`addition, clearing house 130 may compare the current trais-
`action type against pre-established user certificates and
`profiles. In an alternate embodiment, clearing house 130
`may compare the transaction type against fraud detect'on
`
`
`
`

`

`US 2004/0236632 A1
`
`Nov. 25, 2004
`
`systems. Any of a variety of well-known fraud detection
`systems may be used. Any or all of the above verifications
`may be performed.
`
`In addition, clearing house 130 may validate the
`[0048]
`transaction key against pre-existing user keys.
`In one
`embodiment, the user may set-up specific keys to conduct
`specific financial transactions. For example, the user may set
`up a specific key for conducting tollbooth financial transac-
`tions. In an alternate embodiment, one transaction key may
`be used for all vehicle-accessed financial transactions. In one
`
`embodiment, clearing house 130 compares the transaction
`key against a list of keys associated with the particular user.
`In one embodiment, the list of keys may be maintained
`within clearing house 130. If a match is found, then the
`transaction key is valid. Clearing house 130 also verifies that
`the biometric key is valid by comparison of the biometric
`key transmitted to clearing house 130 with a known bio-
`metric key maintained within clearing house 130.
`
`[0049] Once clearing house 130 determines that the trans-
`action type and transaction key are valid, clearing house 130
`selects a pre-existing account from a number of user
`accounts associated with the PTD 100 and the user to
`
`process the financial transaction. In one embodiment, a list
`of accounts associated with PTD 100 may be maintained on
`clearing house 130. In one embodiment, clearing house 130
`selects an account associated with the transaction key.
`[0050] Once the transaction account is selected, clearing
`house 130 negotiates with a financial processor 140 to
`authorize the transaction. Clearing house 130 creates an
`account query to be transmitted Via communication link 170
`to financial processor 140. In one embodiment, the account
`query may include an account number,
`the transaction
`amount, and an account key. The account key may be an
`encrypted key used to verify the account number by the
`financial processor 140. In one embodiment, the account key
`is set-up by the user when PTD 100 is registered with the
`appropriate enabling authority. In one embodiment,
`the
`account query is encrypted using well-know encryption
`technology such as, for example, PKI encryption. Although
`FIG. 1 includes a single financial processor 140, any other
`number of financial processor’s may be connected to clear-
`ing house 130. In one embodiment, the selected account is
`specific to financial processor 140.
`[0051] Financial processor 140 verifies the account and
`deducts the transaction amount from the selected account. In
`
`one embodiment, financial processor 140 verifies that the
`account number and account key match and that the account
`has sufficient funds for the financial
`transaction. If the
`
`account is valid and sufficient funds exist, financial proces-
`sor 140 creates an account authorization message and trans-
`mits the account authorization message via communication
`link 170 to clearing house 130. If the account query is
`invalid or if there are insufficient funds in the account,
`financial processor 140 transmits an invalid account mes-
`sage to clearing house 130.
`[0052]
`In one embodiment, the account authorization mes-
`sage does not contain any account information. Only an
`authorization to proceed with the financial transaction is
`transmitted from financial processor 140 to clearing house
`130. In an alternate embodiment, the account information
`may be contained entirely within clearing house 130 and all
`account authorization may be conducted from within clear-
`ing house 130.
`
`In one embodiment, if the transaction is authorized
`[0053]
`by financial processor 140, the transaction amount is cred-
`ited to an account for VAPGT 120. In one embodiment,
`clearing house 130 negotiates with a financial processor 140
`associated with VAPGT 120 to credit an account for the
`financial transaction. In an alternate embodiment, VAPGT
`120 negotiates to credit the appropriate account.
`
`[0054] Once the account is authorized, clearing house 130
`transmits a transaction authorization message via commu-
`nication link 160 to VAPGT 120. The transaction authori-
`
`zation message allows the financial transaction to be com-
`pleted. Once VAPGT 120
`receives
`the
`transaction
`authorization message, the transaction is completed. In one
`embodiment, the transaction authorization message allows
`the user to pay a toll at a tollbooth or similar transaction. The
`transaction authorization message does not
`include any
`financial processor 140 or user