Title of Invention

METHOD OF, AND SYSTEM FOR, EFFECTING CASHLESS TRANSACTIONS AND A DEVICE FOR USE IN SUCH A SYSTEM

Abstract A method of, and system for, effecting a cashless transaction in which payment is effected through the agency of a device (12) comprising a point-to- point radio transceiver, such as a two-way pager, having non-volatile storage means (56) containing data, such as monetary units or credit card data, required in the execution of the transaction. The monetary units are credited to the device by an over-the-air transmission and are deducted at the point of sale. A credit card sale is effected over-the-air with a primary station (10) coupled to a suitable data base (18).
Full Text Technical Field
The present invention relates to a method of device and system for, effecting
cashless transactions. The present
invention has particular, but not exclusive, application to effecting payment for
goods and/or services by the electronic transfer of monetary units or by a credit
transaction
Background Art
European Patent EP-B-0 538 933 discloses down loading information
into a pager memory from an insertable card. The information may include
prepaid credit units whicn are spent by usage of the pager itself, for example
on a per hour basis.
Smart cards themselves are used in many applications including making
cash payments against pre-stored credit units The smart card has electrical
contacts which mate with corresponding contacts in a card writing/reading
device and the user selects the amount of money to be loaded electronically
into a non-volatile memory of the card, assuming always that the user is in
credit. The card is then available for use by the user to pay for small
transactions which is achieved by inserting the smart card into a card reader
and the operator deducting the requisite amount of cash from the non-volatile
memory of the smart card. Whilst smart cards are proven to be of value in
many areas and particularly in the payment of cash transactions, their
disadvantage is that the user always has to take them to a suitable
writing/reading device for them to be credited with more monetary units or for
monetary units to be deducted
Payments by credit card either require the card to be presented by the

user at the point of sale or for the card number and expiry data to be given, for
example over the telephone. Frequently the vendor makes a check to obtain
authorisation of the transaction involved.
Disclosure of Invention
An object of the invention s to facilitate the making of financial
transactions.
According to one aspect of the present invention there is provided a
method of effecting a cashless transaction in which payment is effected through
the agency of a device comprising a point-to-point radio transceiver having a
non-volatile storage means containing data required in the execution of the
transaction.
The data stored in the non-volatile storage means may comprise pre-
stored monetary units from which deductions are made in a payment
transaction or credit card details from which payment is made as a credit card
transaction.
According to a second aspect of the present invention there is provided
a method of effecting a cashless transaction, comprising presenting a device
having a point-to-point radio transceiver and a non-volatile storage means
storing units of consumable data to a point of sales, effecting payment by
deduction of at least one unit of the consumable data from those stored in the
non-volatile storage means by a two-way radio transaction or by a credit
transaction, relaying details of the transaction to a remote primary station and
storing details of the transaction in the non-volatile storage means.
When the stored consumable data becomes depleted the device may
transmit a request to the primary station to replenish the consumable data in
the non-volatile storage means, the primary station in response to verifying that
the request message is genuine, transfers consumable data as a radio signal
to the requesting device, said device storing the consumable data in the non-
volatile storage means. The request message may include a personal
identification code of the user of the device.

If desired the level of the consumable data stored in the non-volatile
storage means may be monitored and when it reaches or is below a
preselected threshold level a replenishment signal is generated automatically.
According to a third aspect of the present invention there is provided a
system for effecting a cashless transaction, comprising a device having point-
to-point radio transceiving means and a non-volatile storage means containing
data required in the execution of a transaction.
According to a fourth aspect of the present invention there is provided
a system for transferring consumable data to a non-volatile memory, comprising
a primary station having means for connection to a source of the consumable
data and means for transmitting at least some of the consumable data when
required, at least one secondary station having receiving means for receiving
signals transmitted by the primary station, a non-volatile storage means having
a storage area for the consumable data, means lor transferring the consumable
data received by the receiving means to the non-volatile storage means and
means for altering the level of the consumable data stored in tne non-volatile
memory.
According to a fifth aspect of the present invention there is provided a
device for use in effecting a cashless transaction the device comprising point-
to-point radio transceiving means and a non-volatile storage means containing
data required in the execution of a transaction
According to a sixth aspect of the present invention there is provided a
secondary station for use in a system for transferring consumable data to a
non-volatile memory, the system comprising a primary station having means for
connection to a source of the data and means for transmitting the data when
required and at. least one secondary station, the secondary device having
receiving means for receiving signals transmitted by the primary station, non-
volatile storage means having a storage area tor the consumable data, means
for transferring the consumable data received by the receiving means to the
non-volatile storage means and means for altering the level of the consumable
data stored in the non-volatile storage means

Other aspects and subsidiary features of the present invention are
disclosed in the appended claims
In a particular implementation of the device it comprises a two-way pager
having a non-volatile memory for storing consumable data such as monetary
units, and/or credit card details. The size of the pager is substantially the same
as a currently made plastic smart card but the thickness is greater and is equal
to approximately six standard plastic cards. In an alternative implementation
the device could be of a si2e comparable to a remote radio controlled electronic
car door key. A notable advantage of what may be termed a two-way paging
smart card over and above the standard smart card is that the consumable
data, which in this instance comprises monetary units can be credited to the
non-volatile memory by the transmission of a suitable radio message from the
primary station. Optionally deductions of monetary units from the non-volatile
memory may be done over the air. The transmission of the monetary units
may be initiated by the user following checking of the credit balance in the non-
volatile store or maybe effected automatically by the level of monetary units
being monitored and when the level has reached or has gone below a pre-
selected threshold value then the device transmits automatically a request
message to the primary station which responds by sending a topping up
message to the device. In the interests of security the uplink message from the
pager contains a personal identification number (PIN) associated with that user
which PIN may together with the unique address of the pager provide the
necessary level of security to ensure that only the intended device is credited
with the transmitted monetary units.
When using the device as a credit card, the device is presented at. the
point of sale where the details of the proposed sale or transaction are entered.
These details together with the details of the credit card, for example the card
number and expiry date, and the user's PIN, are transmitted to the primary
station which relays them to the credit card centre At the centre a check is
made that the amount to be debited does not take the user's account over its
credit limit, and if not, the credit card centre sends an authorisation of the

transaction over-the-air to the device via the primary station The retailer at the
point-of-sale is immediately advised that the transaction is valid and completes
the sale. Conversely the retailer is advised immediately if the proposed
transaction is not authorised for example because the user's credit limit would
be exceeded or the card has been invalidated because it has been reported as
being lost or stolen and in consequence does not complete the sales
transaction.
The device may by means of a man/machine interface be used to call
up and display financial information on a display panel. The information may
comprise a list of the more recent transactions or a statement of the users
account at a bank or credit card centre.
Brief Description of/Drawings
The present invention will now be described, by way of example, with
reference to the accompanying drawings wherein
Figure 1 is a block schematic diagram of one embodiment of a system
made in accordance with the present invention, and
Figure 2 is a diagram of the device in use
Modes for Carrying Out the Invention
The system shown in Figure 1 comprises at least one primary station 10
which is fixedly sited and a plurality of transportable devices or secondary
stations 12 of which one is shown in detail. The primary station 10 comprises
an input interface 14 which is coupled by a land line 16 to an external data
base 18 which may comprise a bank and/or credit card centre. Input
information to the input interface 14 is encoded, optionally encrypted, and
formatted in a stage 20 under the control of a controller 22. The data may be
formatted in accordance with a known type of paging signal protocol such as
the CCIR Radio Paging Code No 1 (alternatively known as POCSAG). In
accordance with the POCSAG protocol the address of a secondary station to
which the encoded message is to be sent is appended to the front of the

message, the addresses of all the pagers operating on the system are stored
in an address store 24. The encoded and formatted message is supplied to a
transmitter 26 from where it is propagated by way of an antenna 28 and an
intervening diplexer 30 as a point-to-point downlink signal.
Any uplink radio signals to the primary station 10 are detected by the
antenna 28 and passed to a receiver 32 by way of the diplexer 30. The
received signals are demodulated and decoded in a decoder 34. Those
messages which are destined for the data base 18 are supplied to it from an
output interface 36 which is also coupled to the land line 16
The secondary station 12 comprises an antenna 36 coupled to a
receiving stage 40. An output of the receiving stage 40 is coupled to a decoder
42 which decodes and, if appropriate, decrypts the received signal and passes
its output to a microcontroller 44 The microcontroller 44 is operated in
accordance with a program stored in a read-only memory 46. The
microcontroller 44 has outputs coupled to a display driver 48 of an LCD panel
50, to an annunciating device as represented by a loudspeaker 52, to a random
access memory 54 for storing messages and to a non-volatile store 56 which
stores consumable data which is relayed from the data base 18 via the
transmitter 26 and/or credit card number. A man/machine interface comprising
a keypad 58 is connected to the microcontroller 44 Art Infrared Data sensor and a set
of electrical contacts 60 for interfacing with a card reading apparatus are
coupled to the microcontroller 44 The microcontroller 44 is coupled to a
transmitter 62 which has an output coupled to the antenna 38
In one mode of operation the secondary station acts as a normal pager
for alpha-numeric messages. Since this mode is well known in the art it will not
be described in detail but for the sake of completeness reference is made to
the "Book of the CCIR Radio-Paging Code No 1" issued by the Secretary,
Radio Paging Code Standards Group, British Telecom, London
In a second mode the secondary station 12 functions as the equivalent
of a smart card and is able to store a variety of information in its non-volatile
store 56 for use later. The secondary station may operate as an electronic

cash card in which monetary units have been loaded into the non-volatile store
56 by way of radio transmissions from the primary station 10. In one
arrangement a user by virtue of suitably actuating the keypad 58 is able to
display on the LCD panel 50 the amount of cash which he or she wants to be
loaded into the non-volatile store 56 for subsequent use. This may be effected
by displaying several preset amounts, one of which is selected by the user
using a cursor. Having selected the amount the microcontroller 44 formats a
request message and adds the user's PIN code. The request message is
transmitted as a point to point signal via the transmitter 62 to the receiver 32
in the primary station 10 The signal may be transmitted as a pseudo random
bit sequence. The message is decoded and the PIN number is checked
against PIN numbers associated with addressees in the address store 24. If
it is confirmed that the request message is a genuine message then a request
is sent by the controller 22 by way of the output interface 36 to the data base
18. The data base 18 checks that the user s bank account is in credit and.
assuming that it is, an authorisation of the amount is sent to the input interface
14. The controller 22 takes the message indicating the amount of the monetary
units to be credited to the user together with the PIN number and appends the
user's address. The encoder 20 encodes and formats the message data which
is passed to the transmitter 26 for transmitting as a point-to-point signal in the
appropriate frame of the POCSAG message to the secondary station.
The secondary station 12 is energised in accordance with the batten/
economising protocol of the paging system and on receiving a transmission at
the receiver 40, it is decoded in the decoder 42 and passed to the micro
controller 44 for checking that the message is addressed to this particular
secondary station and as an additional security check the PIN number is
compared to the one assigned to the pager user. If both check out satisfactory
then the monetary units are transferred to the non-volatile store 56.
The secondary station 12 can thereafter be used as a smart card and
deduction of monetary units held in the non-volatile store 56 may be done Dy
radio over the air or through a suitable IRDA or smart card reading station and

payment is effected by simultaneously crediting electronically monetary units
to the supplier of goods or services and reducing the number held in the non-
volatile store 56.
When the number of monetary units is low or has run out then the user
may request more monetary units to be credited to his secondary station,
assuming that he is in credit at the data base 18. Since such an operation may
cause a time delay which may be irritating to the user, it is possible to put the
secondary station into an auto-cash load mode In this mode the micro-
controller 44 monitors the number of monetary units in the store 56 and
compares the number against a pre-selected threshold value. When the
number of units has dropped to a value equal to or less than the threshold
level, the microcontroller 44 formulates a request message which is transmitted
via a transmitter 62 to the primary station 10. As before, the message is
decoded and verified and assuming that the request is found to be genuine
then the data base is asked to release a pre-determined number of monetary
units to be credited to the particular secondary station The user Dy requesting
a current balance using the keypad can be advised of the number of monetary
units held in the store 56 and also can get at least the more recent transactions
displayed on the panel 50. The user may also request via the primary station
that the data base 18 can give access to the current state of the user's bank
account. Such messages will require the use of the PIN code.
In a situation of the users account being overdrawn and no further credit
being given, the data base 18 can initiate the generation of a message which
is relayed via the primary station to cause the paging smart card to be
invalidated and to get the microcontroller 44 in the secondary station to
generate and transmit a message confirming positively that the paging smart
card has been invalidated.
The paging smart card can be revalidated by taking it to a bank or by the
transmission of an over-the-air message.
In the event of the secondary station being lost or stolen, it can be
disabled by an over-the-air message sent by the primary station 10 in response

to it being notified of the loss or theft.
When using the secondary station 12 as a credit card, the secondary
station is presented at the point of sale where the details of the proposed sale
or transaction are entered These details together with the details of the credit
card, for example the card number and expiry date, and the user's PIN, stored
in the non-volatile store 56, are transmitted to the primary station 10 which
relays them to the data base 18 which functions as a credit card centre. At the
data base 18 a check is made that the amount to be debited does not take the
user's account over its credit limit, and if not, the data base 18 sends an
authorisation of the transaction over-the-air to the device via the primary station
10. The retailer at the point-of-sale is immediately advised that the transaction
is valid and completes the sale. Conversely the retailer is advised immediately
if the proposed transaction is not authorised for example because the user's
credit limit would be exceeded or the card has been invalidated because it has
been reported as being lost or stolen and in consequence does not complete
the sales transaction.
The secondary station 12 can also store details of all purchases made
and the current standing credit limit Such information can be displayed at the
user's convenience on the LCD panel 50
Figure 2 illustrates the secondary station 12 in an IRDA reader 64 at a
point of sale. A remotely located primary station 10 communicates by point-to-
point messages with the secondary station. The data base 18 is shown
coupled to the primary station 10.
Assuming that the secondary station 12 also functions as a loyalty card
for a supermarket 66, the supermarket computer 68 is coupled to the Infrared
data reader 64 and to the primary station 10 A connection 70 to the IRDA reader
64 enables the computer to monitor the customer's purchases award loyalty
points and give discounts whenever appropriate The supermarket 66 can
advise all or selected customers, via the radio link between the primary and
secondary stations, of special offers, new products, new or changing services
and the like, and the customers by virtue of the uplink can reserve or buy

goods, payment being made at the time of ordering or later at collection by
credit card deductions or deductions of monetary units.
Further in the event, of a user making a purchase of say travel or theatre
tickets by telephone or electronically, payment can be effected over-the-air
without having to go to a point-of-sale, evidence of the transaction being stored
in the non-volatile store
From reading the present disclosure, other modifications will be apparent
to persons skilled in the art. Such modifications may involve other features
which are already known in the design, manufacture and use of data
transmission apparatus and component parts thereof and which may be used
instead of or in addition to features already described herein.
Industrial Applicability
A method of, and system for, for effecting cash transactions in a
cashless manner.

We Claim :-
1. A method of effecting a cashless transaction, comprising
the steps of : presenting to a point of sales, a device (12)
having a non-volatile storage means (56) comprising stored units
of consumable data and having a point-to-point radio transceiver
(40, 62);
deducting at least one unit of the consumable data
from those stored in the non-volatile storage means (56) for
effecting payment;
transmitting a request message to a remote primary
station (10) from the device (12) to replenish the consumable
data in the non-volatile storage means (56);
verifying at the primary station (10) that the request
message received from device (12) is genuine;
transferring the consumable data as a radio signal
from the primary station (10) to the device (12)
storing rhe consumable data in non-volatile storage
means (56); characterised in that.:
the level of the consumable data in, the non-volatile
storage means (56) is monitored by the device (12); and
the request message is seat to the primary station (10)
when said level drops to or below a pre-selected threshold level
2. A device for effecting a cashless transaction, having
receiving means (40) for receiving point-to-point signals
transmitted by the primary station (10) containing consumable
data, a non-volatile storage means (56) having storage area for

consumable data, a transmitting means (62) for transmitting
point-to-point signals to the primary station (10), a control
means (44) for controlling the operation of the device (12) in
transferring the consumable data received by the receiving means
(40) to the non-volatile storage means (56) and effecting a
transaction by reducing the Level of the consumable data stored
in the non-volatile storage means (56), a display means (50) for
displaying data, and a man-machine interface means (53.) for
enabling a user to input a. request for transmission to the primary
station (10) and to request the control means (44) to display on
the display means (50) signals to be transmitted, signals which
have been received, or selected information currently stored in
the non-volatile storage means; (56), characterised in that: the
device comprises control means (44) for monitoring the level of
the consumable data currently held in the non-volatile storage
means (56) and, in response to the level dropping below a pre-
selected threshold value, generating a message to be transmitted
to the primary station (10) requesting that the level of the
consumable data in the non-volatile storage raeans (56) be increased.
3. A system for effecting a cost less transaction, comprising
a primary station (10) having means (16) for connection x:o a
source (18) of consumable data, means (26) for transmitting the
data when requested and a receiving means (32) for receiving
signals transmitted by the device (12); and a device (12) having
receiving means (40) for receiving point-to-point signals
transmitted by the primary station (10) containing the consumable
data, a non-volatile storage means (56) having storage area for

consumable data, a transmitting means (62) for transmitting
point-to-point signals to the primary station (10), a control
means (44) for controlling the operation of the device (12) in
transferring the consumable data received by the receiving means
(40) to the non-volatile storage means (56) and effecting a
transaction by reducing the level of the consumable data stored
in the non-volatile storage means (56), a display means (50) for
displaying data, and a man-machine interface means (58) for
enabling a user to input a. request for transmission to the primary
station (10) and to request the control means (44) to display on
the display means (50) signals to be transmitted, signals which
have been received, or selected information currently stored in
the non-volatile storage means (56), characterised in that the
system comprises control means (44.) for monitoring the level of
the consumable data currently held in the non-volatile storage
means (56) and, in response to the level dropping below a pre-
selected threshold value, generating a message to be transmitter:
to the primary station. (10) requesting that the level of the
consumable data in the non-volatile storage means (56) be increased.

A method of, and system for, effecting a cashless transaction in which
payment is effected through the agency of a device (12) comprising a point-to-
point radio transceiver, such as a two-way pager, having non-volatile storage
means (56) containing data, such as monetary units or credit card data,
required in the execution of the transaction. The monetary units are credited
to the device by an over-the-air transmission and are deducted at the point of
sale. A credit card sale is effected over-the-air with a primary station (10)
coupled to a suitable data base (18).

Documents:

1511-cal-1998-granted-abstract.pdf

1511-cal-1998-granted-claims.pdf

1511-cal-1998-granted-correspondence.pdf

1511-cal-1998-granted-description (complete).pdf

1511-cal-1998-granted-drawings.pdf

1511-cal-1998-granted-examination report.pdf

1511-cal-1998-granted-form 1.pdf

1511-cal-1998-granted-form 2.pdf

1511-cal-1998-granted-form 3.pdf

1511-cal-1998-granted-form 5.pdf

1511-cal-1998-granted-pa.pdf

1511-cal-1998-granted-reply to examination report.pdf

1511-cal-1998-granted-specification.pdf

1511-cal-1998-granted-translated copy of priority document.pdf


Patent Number 226412
Indian Patent Application Number 1511/CAL/1998
PG Journal Number 51/2008
Publication Date 19-Dec-2008
Grant Date 17-Dec-2008
Date of Filing 25-Aug-1998
Name of Patentee KONINKLIJKE PHILIPS ELECTRONICS N.V.
Applicant Address A LIMITED LIABILITY COMPANY ORGANIZED AND ESTABLISHED UNDER THE LAWS OF THE KINGDOM OF THE NETHERLANDS AT GROENEWOUDSEWEG 1, BA EINDHOVEN
Inventors:
# Inventor's Name Inventor's Address
1 ANTHONY KEITH SHARPE 75 HIGH STREET, TEVERSHAM, CAMBRIDGE CB1 5AG
PCT International Classification Number H00/ 20D
PCT International Application Number N/A
PCT International Filing date
PCT Conventions:
# PCT Application Number Date of Convention Priority Country
1 9718214.1 1997-08-29 U.K.
2 9719768.5 1997-09-18 U.K.