WO2007126790A1

WO2007126790A1 - Obtaining transaction accounts using identification cards

Info

Publication number: WO2007126790A1
Application number: PCT/US2007/007531
Authority: WO
Inventors: Glade Erikson
Original assignee: American Express Travel Related Services Company, Inc.
Priority date: 2006-04-04
Filing date: 2007-04-04
Publication date: 2007-11-08
Also published as: US7669758B2; US20100155468A1; US20070228153A1; US7891558B2

Abstract

A system, method, and computer program product are used to obtain a transaction account. The system comprises at least one input device, at least one credit requesting system, at least one transaction account provider, and at least one credit reporting agency. The input device receives an identification card (e.g., driver's license) and possibly additional information from an individual. The data is then used to automatically generate a transaction account application. The transaction account provider receives and evaluates the transaction account application. The credit requesting system is coupled to the transaction account provider and the at least one input device. The credit requesting system controls transmission of the transaction account application to the transaction account provider and receives the evaluation result from the transaction account provider.

Description

OBTAINING TRANSACTION ACCOUNTS USING IDENTIFICATION CARDS

BACKGROUND OF THE INVENTION

Field of the Invention

[0001 J The present invention generally relates to applying for and obtaining transaction accounts, and more particularly to using an identification card to obtain such transaction accounts.

Background Art

[0002] There are currently several methods of obtaining a transaction account. Many credit-offering companies send out mass mailings of "pre-approved" applications to prospective customers. Those who receive such mailings and are interested in obtaining a transaction account fill out the written application and mail it back for processing. As another example, when a customer is making a purchase at a store, often the sales clerk will inquire whether the customer is interested in applying for a transaction account, sometimes offering some sort of immediate discount for doing so. If so, the customer either manually fills out a paper application with his or her personal information, or in some cases verbally provides the necessary information to the sales clerk, who then keys the information into a computer terminal.

[0003] There are several disadvantages to this latter method of applying for a transaction account. It is time consuming and can be somewhat annoying for the customer to manually fill out the paper application while standing in a store. The applications are typically small and hard to read, having little space for the necessary information. In some instances, a customer might sloppily complete the application, hand it to the sales clerk, and then the clerk has to ask the consumer to verbally provide the needed information because some if it might be illegible. This is a further waste of time. A more substantial disadvantage is the possibility of identity theft.

[0004] In this age of identity theft and credit fraud, consumers are more protective than ever of their personal information. When applying for transaction accounts, consumers are very wary of having to supply and submit any personal information. This is even more prevalent when the application for credit is done in a public place, such as in a store or other point-of-sale area. [0005] Given the foregoing, what is needed is a system, method and computer program product for automatically applying for a transaction account with the use of an identification card.

BRIEF SUMMARY OF THE INVENTION

10006] The present invention meets the above identified needs by providing a system, method and computer program product for automatically completing a transaction account application with the use of a consumer's identification card.

[0007] The present invention provides a system and method in which a consumer's identification card is received by a customer service representative. The identification card is then scanned by a card reading device, whereby the format of the identification card is validated. The consumer's personal information is then automatically imported from the identification card into the transaction account application. The information is then used to complete the application, and the application is transmitted to a transaction account provider. The transaction account provider processes the application and then transmits a decision back to the customer service representative.

[0008] Further features and advantages of the present invention as well as the structure and operation of various embodiments of the present invention are described in detail below with reference to the accompanying drawings.

BRIEF DESCRIPTION OF THE DRAWINGS/FIGURES

[0009] The features and advantages of the present invention will become more apparent from the detailed description set forth below when taken in conjunction with the drawings. The left most digit of a reference number identifies the drawing in which the reference number first appears.

[0010] Figure 1 is a system diagram, according to one embodiment of the present invention.

[0011] Figure 2 is a flowchart illustrating various processes, according to one or more embodiments of the present invention.

[0012] Figure 3 is a block diagram of a sample computer system that can be used in the implementation of one or more embodiments of the present invention. DETAILED DESCRIPTION OF THE INVENTION

[0013] The present invention is directed to a system, method and computer program product for obtaining a transaction account with the use of a consumer's identification card.

[0014] The present invention is now described in more detail herein in terms of the above exemplary description. This is for convenience only and is not intended to limit the application of the present invention. In fact, after reading the following description, it will be apparent to one skilled in the relevant art(s) how to implement the following invention in alternative embodiments.

Terminology

[0015] The terms "user," "consumer", "customer," etc., and/or the plural form of these terms are used interchangeably throughout herein to refer to those persons or entities capable of accessing, using, being affected by and/or benefiting from the tool that the present invention provides for obtaining transaction accounts using a consumer's identification card.

[0016] The terms "business", "customer service representative", or "merchant" may be used interchangeably with each other and shall mean any person, entity, distributor system, software and/Or hardware that is a provider, broker and/or any other entity in the distribution chain of goods or services. For example, a merchant may be a grocery store, a retail store, a travel agency, a service provider, an on-line merchant or the like.

[0017] The term "transaction account provider" or the plural form of this term is used throughout herein to refer to any business entity that is engaged in the business of providing transaction card accounts or the like. Currently, there are a variety of such entities, such as American Express, but the present invention is not limited to any particular such entity.

[0018] The term "transaction card" as used herein may include any type of open or closed charge card, credit card, debit card, stored value card, an RFID chip based card or token, and the like. - A -

RFID and Transmission of Magnetic Stripe Data

[0019] It should be noted that the transfer of information in accordance with the present invention may be done in a format recognizable by a merchant system or account issuer. In that regard, by way of example, the information may be transmitted from an RFID device to an RFID reader, or from the RFID reader to the merchant system in magnetic stripe or multi-track magnetic stripe format.

10020] Because of the proliferation of devices using magnetic stripe format, the standards for coding information in magnetic stripe format were standardized by the International Organization for Standardization in ISO/EEC 7811-n (characteristics for identification cards) which are incorporated herein by reference. The ISO/TEC 7811 standards specify the conditions for conformance, physical characteristics for the card (warpage and surface distortions) and the magnetic stripe area (location, height and surface profile, roughness, adhesion, wear and resistance to chemicals), the signal amplitude performance characteristics of the magnetic stripe, the encoding specification including technique (MFM), angle of recording, bit density, flux transition spacing variation and signal amplitude, the data structure including track format, use of error correction techniques, user data capacity for ID-I, ID-2 and ID-3 size cards, and decoding techniques, and the location of encoded tracks.

[0021] Typically, magnetic stripe information is formatted in three tracks. Certain industry information must be maintained on certain portions of the tracks, while other portions of the tracks may have open data fields. The contents of each track and the formatting of the information provided to each track is controlled by the ISO/TEC 7811 standard. For example, the information must typically be encoded in binary. Track 1 is usually encoded with user information (i.e., name) in alpha-numeric format. Track 2 is typically comprised of discretionary and nondiscretionary data fields. In one example, the nondiscretionary field may comprise 19 characters and the discretionary field may comprise 13 characters. Track 3 is typically reserved for financial transactions and includes enciphered versions of the user's personal identification number, country code, current units amount authorized per cycle, subsidiary accounts, and restrictions.

[0022] As such, where information is provided in accordance with the present invention, it may be provided in magnetic stripe track format. For example, the counter values, authentication tags and encrypted identifiers, described herein, may be forwarded encoded in all or a portion of a data stream representing data encoded in, for example, track 2 or track 3 format.

Databases

[0023] The databases discussed herein may be any type of database, such as relational, hierarchical, object-oriented, and/or the like. Common database products that may be used to implement the databases include DB2 by EBM (White Plains, New York), any of the database products available from Oracle Corporation (Redwood Shores, California), Microsoft Access or MSSQL by Microsoft Corporation (Redmond, Washington), or any other database product. Databases may be organized in any suitable manner, including as data tables or lookup tables. Association of certain data may be accomplished through any data association technique known and practiced in the art. For example, the association may be accomplished either manually or automatically. Automatic association techniques may include, for example, a database search, a database merge, GREP, AGREP, SQL, and/or the like. The association step may be accomplished by a database merge function, for example, using a "key field" in each of the manufacturer and retailer data tables. A "key field" partitions the database according to the high-level class of objects defined by the key field. For example, a certain class may be designated as a key field in both the first data table and the second data table, and the two data tables may then be merged on the basis of the class data in the key field. In this embodiment, the data corresponding to the key field in each of the merged data tables is preferably the same. However, data tables having similar, though not identical, data in the key fields may also be merged by using AGREP, for example.

System Overview

[0024] Figure 1 shows a system 100, according to one embodiment of the present invention. System 100 includes an input device 102, a credit requesting system 104, a transaction account provider 106, and a credit reporting agency 108. In one embodiment, devices 102, 104, 106, and 108 are coupled via a network 110, while in other embodiments they can be directly linked. Network 110 can be a wired or wireless local or distributed system which can utilize the Internet, an intranet, an extranet, or the like, or any similar or analogous communication system as would be known to persons skilled in the relevant art. [0025] In one example, input device 102 comprises one or more devices that allow for capturing personal information from an identification card (e.g., driver's license) and, if necessary, additional information associated with a consumer. For example, input device 102 can be, but is not limited to, a card reader, a bar code reader, a keyboard, a touch screen, a kiosk, a voice recognition system, or any other system that allows for this functionality. In one example, input device 102 can be located at a merchant's location, for example, a supermarket, warehouse store, electronics store, point-of-sale terminal, or the like. In various examples, the additional information can be Social Security number (or partial Social Security number, as discussed in co-owned U.S. Patent Appl. No. 11/236,822, filed September 28, 2005, which is incorporated herein by reference) employer, creditor's names, monthly debt payments, or any other information that can be used along with the information scanned from the identification card to uniquely identify the consumer to transaction account provider 106.

[0026] In one example, there may be more than one input device 102, transaction account requesting system 104, transaction account provider 106, and credit reporting agency 108, coupled together either directly or via optional network 110. This can be when several point-of-sale (or point-of-credit application) devices (e.g., input devices 102) send information about several requesting individuals to more than one transaction account provider (e.g., transaction account providers 106) from either the same merchant or different merchants. The transaction account providers might request credit reports from one or more credit reporting agencies 108, by way of one or more credit requesting systems 104.

[0027] In one example, the personal information and the comparison result can be encrypted or otherwise secured during transmission.

Process OverView

[0028] Figure 2 shows a flowchart illustrating a process 200, according to one embodiment of the present invention. Process 200 begins at step 202, at which a consumer requests a transaction account application. In step 204, the consumer provides his or her identification card, which is then scanned by an input device, such as a card reader. An example of a card reader could be one such as the idScan, described at http://www.card-scanner.com/id-scan-license.html. In step 206, the input device determines the validity of the identification card. If the identification card is not validated, the application process is terminated at step 207. If the card is determined to be valid, at step 208, the transaction account application is automatically populated with data scanned from the identification card. In step 210, the consumer reviews the application for correctness. Although not always required, the consumer may also provide additional information at this step. The additional information can be a Social Security number (or partial Social Security number, as discussed in above-referenced U.S. Patent Appl. No. 11/236,822), employer, creditor's names, monthly debt payments, or any other information that can be used along with the information scanned from the identification card to uniquely identify the consumer and determine the consumer's creditworthiness. In step 212, the transaction account application is transmitted to the transaction account provider.

[0029] In step 214, the transaction account provider receives the application. At this point, optional step 216 may begin. In optional step 216, the information captured from the identification card is compared to a database of known identification card information. If a match is found, the information is compared to further determine the validity of the identification card, as shown in step 218. If the information does not match correctly, then it is possible that the identification card is counterfeit. If a card is determined to be invalid or counterfeit, its data is stored in a database of counterfeit cards, as shown in step 226. The application process is then terminated at step 207.

[0030J If the card is determined to be valid, the process moves on to step 220, where the transaction account application is processed. Typically, the transaction account provider will transmit the consumer's data to a credit reporting agency to obtain the consumer's credit report. The credit reporting agency can be any established credit reporting agency or bureau (e.g., TransUnion, Equifax and Experian), or any credit reporting agency now operating or established in the future.

[0031] If there is a match of the consumer's data in the credit reporting agency's records, a credit report is transmitted to the transaction account provider. The credit report is then used in the decision to approve or deny the transaction account application. In step 222, the result of the decision is transmitted back to the credit requester (e.g., the store merchant), and the transaction account is then either approved or rejected in step 224. Example Implementations

[0032] The present invention {i.e., system 100, process 200, or any part(s) or function(s) thereof) may be implemented using hardware, software or a combination thereof and may be implemented in one or more computer systems or other processing systems. However, the manipulations performed by the present invention are often referred to in terms, such as receiving or comparing, which are commonly associated with mental operations performed by a human operator. No such capability of a human operator is necessary, or desirable in most cases, in any of the operations described herein which form part of the present invention. Rather, the operations are machine operations. Useful machines for performing the operation of the present invention include general purpose digital computers or similar devices.

[0033] In fact, in one embodiment, the invention is directed toward one or more computer systems capable of carrying out the functionality described herein. An example of a computer system 300 is shown in Figure 3.

[0034] The computer system 300 includes one or more processors, such as processor 304.

The processor 304 is connected to a communication infrastructure 306 (e.g., a communications bus, cross over bar, or network). Various software embodiments are described in terms of this exemplary computer system. After reading this description, it will become apparent to a person skilled in the relevant art(s) how to implement the invention using other computer systems and/or architectures.

[0035] Computer system 300 can include a display interface 302 that forwards graphics, text, and other data from the communication infrastructure 306 (or from a frame buffer not shown) for display on the display unit 330.

[0036] Computer system 300 also includes a main memory 308, preferably random access memory (RAM), and may also include a secondary memory 310. The secondary memory 310 may include, for example, a hard disk drive 312 and/or a removable storage drive 314, representing a floppy disk drive, a magnetic tape drive, an optical disk drive, etc. The removable storage drive 314 reads from and/or writes to a removable storage unit 318 in a well known manner. Removable storage unit 318 represents a floppy disk, magnetic tape, optical disk, etc. which is read by and written to by removable storage drive 314. As will be appreciated, the removable storage unit 318 includes a computer usable storage medium having stored therein computer software and/or data. [0037] In alternative embodiments, secondary memory 310 may include other similar devices for allowing computer programs or other instructions to be loaded into computer system 300. Such devices may include, for example, a removable storage unit 322 and an interface 320. Examples of such may include a program cartridge and cartridge interface (such as that found in video game devices), a removable memory chip (such as an erasable programmable read only memory (EPROM), or programmable read only memory (PROM)) and associated socket, and other removable storage units 322 and interfaces 320, which allow software and data to be transferred from the removable storage unit 322 to computer system 300.

[0038] Computer system 300 may also include a communications interface 324.

Communications interface 324 allows software and data to be transferred between computer system 300 and external devices. Examples of communications interface 324 may include a modem, a network interface (such as an Ethernet card), a communications port, a Personal Computer Memory Card International Association (PCMCIA) slot and card, etc. Software and data transferred via communications interface 324 are in the form of signals 328 which may be electronic, electromagnetic, optical or other signals capable of being received by communications interface 324. These signals 328 are provided to communications interface 324 via a communications path (e.g., channel) 326. This channel 326 carries signals 328 and maybe implemented using wire or cable, fiber optics, a telephone line, a cellular link, a radio frequency (RF) link and other communications channels.

[0039] In this document, the terms "computer program medium" and "computer usable medium" are used to generally refer to media such as removable storage drive 314, a hard disk installed in hard disk drive 312, and signals 328. These computer program products provide software to computer system 300. The invention is directed to such computer program products.

[0040] Computer programs (also referred to as computer control logic) are stored in main memory 308 and/or secondary memory 310. Computer programs may also be received via communications interface 324. Such computer programs, when executed, enable the computer system 300 to perform the features of the present invention, as discussed herein. In particular, the computer programs, when executed, enable the processor 304 to perform the. features of the present invention. Accordingly, such computer programs represent controllers of the computer system 300. [0041] In an embodiment where the invention is implemented using software, the software may be stored in a computer program product and loaded into computer system

300 using removable storage drive 314, hard drive 312 or communications interface 324.

The control logic (software), when executed by the processor 304, causes the processor

304 to perform the functions of the invention as described herein. [0042J In another embodiment, the invention is implemented primarily in hardware using, for example, hardware components such as application specific integrated circuits

(ASICs). Implementation of the hardware state machine so as to perform the functions described herein will be apparent to persons skilled in the relevant art(s). [0043] In yet another embodiment, the invention is implemented using a combination of both hardware and software.

Conclusion

10044] While various embodiments of the present invention have been described above, it should be understood that they have been presented by way of example, and not limitation. It will be apparent to persons skilled in the relevant art(s) that various changes in form and detail can be made therein without departing from the spirit and scope of the present invention, as appropriate in the jurisdiction^) in which the present invention is implemented). Thus, the present invention should not be limited by any of the above described exemplary embodiments, but should be defined only in accordance with the following claims and their equivalents.

[0045] In addition, it should be understood that the figures and screen shots illustrated in the attachments, which highlight the functionality and advantages of the present invention, are presented for example purposes only. The architecture of the present invention is sufficiently flexible and configurable, such that it may be utilized (and navigated) in ways other than that shown in the accompanying figures.

[0046] Further, the purpose of the following Abstract is to enable the U.S. Patent and

Trademark Office and the public generally, and especially the scientists, engineers and practitioners in the art who are not familiar with patent or legal terms or phraseology, to determine quickly from a cursory inspection the nature and essence of the technical disclosure of the application. The Abstract is not intended to be limiting as to the scope of the present invention in any way.

Claims

WHAT IS CLAIMED IS:

1. A method for obtaining a transaction account, comprising:

(a) receiving an identification card to identify an individual;

(b) automatically determining the validity of the identification card;

(c) automatically entering data pertaining to the individual into a transaction account application, said data being received from the identification card;

(d) transmitting the completed transaction account application from an input device to a transaction account provider;

(e) evaluating the transaction account application; and

(f) transmitting the result of the evaluation back to the input device.

2. The method of claim I₅ wherein step (c) further comprises requiring said individual to review said data on the transaction account application, and if necessary, to:

(i) correct said data; and/or

(ii) provide additional data.

3. The method of claim 2, wherein the additional data provided in step (c)(ii) comprises at least a Social Security Number or a Partial Social Security Number.

4. The method of claim 1 , further comprising:

requesting a search of a database of at least one credit reporting agency using the data provided by the identification card to evaluate the transaction account application.

5. The method of claim 1, further comprising:

(g) automatically comparing the data read from the identification card with a database of known identification cards; and (h) automatically determining the validity of the identification card using the result of the database comparison.

6. The method of claim 5, further comprising:

entering the identification card data into a database of counterfeit identification cards, if said identification card is determined to be invalid.

7. The method of claim 1, wherein steps (a) - (f) are performed at different physical locations.

8. The method of claim 1, wherein steps (a) - (c) are performed in one of a public place, a store, and a point-of-sale area.

9. A system for obtaining a transaction account, comprising:

at least one input device that reads an identification card of an individual and automatically prepares a transaction account application;

at least one transaction account provider coupled to the at least one input device, wherein the transaction account provider evaluates the transaction account application;

at least one credit reporting agency coupled to at least one transaction account provider, wherein the credit reporting agency transmits a credit report to the transaction account provider; and

at least one credit requesting system coupled to the at least one input device, the at least one transaction account provider, and the at least one credit reporting agency, the credit requesting system facilitating transmission of the transaction account application to and from the input device and the transaction account provider.

10. The system of claim 9, further comprising:

a network coupling together the at least one input device, the at least one credit requesting system, the at least one transaction account provider, and the at least one credit reporting agency.

11. The system of claim 10₅ wherein the at least one input device comprises a card reader.

12. The system of claim 11, wherein the at least one input device and the at least one credit requesting system are located in one of a public place, a store, and a point-of-sale area.

13. A computer program product for obtaining a transaction account, the computer program product comprising a computer readable medium having control logic stored therein, said control logic comprising:

first computer readable program code means for causing the computer to automatically receive identification of an individual based on data read from an identification card; second computer readable program code means for causing the computer to receive additional identifying information from the individual; third computer readable program code means for causing the computer to complete a transaction account application using the data read from the identification card and the additional identifying information; fourth computer readable program code means for causing the computer to transmit the completed transaction account application to a transaction account provider for evaluation; and fifth computer readable program code means for causing the transaction account provider to evaluate the transaction account application; and sixth computer readable program code means for transmitting the result of the evaluation back to a credit requesting system.

14. The computer program product of claim 13, wherein said fifth computer readable program code means causes the computer to request a search of a database of at least one credit reporting agency to retrieve a credit report, whereby the credit report is used in part to evaluate the transaction account application.

15. The computer program product of claim 13, wherein the additional information comprises at least a Social Security Number or a Partial Social Security Number.