Method and apparatus for securing credit card transactions

US5317636A · kind A · utility

Assignee

• ARRIS Group, Inc. · US

Inventor

• Gerardo Vizcaino · Nashua, US

Key dates

• Filing date: Dec 9, 1992
• Grant date: May 31, 1994
• Expiry date: Dec 9, 2012

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q20/4093
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

This disclosure relates to a method and apparatus for improving the security of credit card transactions. It involves a so-called "smart" credit card, which includes a processor, a memory, and a display window. When used, the card produces a verification number, which is based on a transaction sequence number and an encryption algorithm stored in the memory of the card. The verification number produced by the card is read in the display window and transmitted to a verification computer. The computer uses the verification number, together with a de-encryption algorithm, to produce a computed transaction sequence number. If the computed transaction sequence number corresponds to a transaction sequence number stored in the memory of the computer, then the computer will authorize the transaction, otherwise it will not. Both the card and computer change their respective transaction sequence numbers, such as by incrementation, so that different transaction sequence numbers are stored in the respective memories, for the production of a different verification number for the next transaction.