System and method for transponder-enabled account transactions

Abstract

A transponder-initiated transaction system is electromagnetically coupled to an account transponder device at the point of sale. The account transponder device may be embedded within a watch, key chain or other personal article for convenience or affinity. The transponder device may communicate account information to an RF-enabled point of sale device, enabling transactions to take place without resort to remote data processing facilities. In other embodiments partial or complete account information may be accessed or stored at co-located or remote sources. New account registrants may access a Web site to enter a transponder ID and activate a new account, which may be a credit account, debit account, cash account, special purpose vending account, or other types of accounts.

1 - 20 . (canceled)  
     
     
         21 . A transponder-reader payment system comprising: 
 a transponder system responsive to a Radio Frequency (RF) interrogation signal, the transponder system including a transponder database, the transponder database storing at least a transponder system identifier;    a Radio Frequency Identification (RFID) reader in RF communication with the transponder system, the RFID reader providing an interrogation signal to the transponder system and receiving the transponder system identifier;    a merchant system for receiving the transponder system identifier, the merchant system including a merchant system identifier and a merchant point of interaction device in communication with the RFID reader, the merchant system configured to match the transponder system identifier and the merchant system identifier to a user transaction request forming a merchant transaction request;    an issuer system comprising: 
 an issuer system server in communication with the merchant point of interaction device for receiving the merchant transaction request; and  
 an issuer system database including a funding source data file containing a funding source value for satisfying the merchant transaction request and a funding account protocol, the funding source data file associated with the transponder system identifier; and  
   a primary funding source containing a primary funding source value, the primary funding source in communication with the issuer system server, the primary funding source configured for one of providing value to and receiving value from the funding account data file, the primary funding source associated with the transponder system identifier,    wherein the issuer system retrieves at least a portion of the user transaction request value from the funding source data file and provides at least a portion of the funding source value to the merchant system in accordance with the funding protocol.    
     
     
         22 . The transponder-reader system of  claim 21 , further comprising a secondary funding source containing a secondary funding source value, the secondary funding source in communication with the issuer system server, the secondary funding source configured for one of providing value to and receiving value from the funding source data file, the secondary funding source associated with the transponder system identifier.  
     
     
         23 . The transponder-reader system of  claim 21 , wherein the funding source data file comprises a preloaded value data file and a reload protocol data file, the preloaded value data file and reload protocol data file associated with the transponder system identifier, the preload value data file storing a predetermined value for use in satisfying a user transaction request.  
     
     
         24 . The transponder-reader system of  claim 23 , wherein the primary funding source is associated with the preloaded value data file.  
     
     
         25 . The transponder-reader payment system of  claim 23  wherein the issuer system server retrieves the portion of the funding source value from the primary funding source in accordance with the reload protocol data file.  
     
     
         26 . The transponder-reader payment system of  claim 25 , wherein the primary funding source comprises a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.  
     
     
         27 . The transponder-reader payment system of  claim 21 , wherein the RFID reader receives the transponder system identifier in Track 1/Track 2 format.  
     
     
         28 . A transponder-reader payment system comprising: 
 a transponder system responsive to a Radio Frequency (RF) interrogation signal, the transponder system including a transponder database, the transponder database storing at least a transponder system identifier;    a Radio Frequency Identification (RFID) reader in RF communication with the transponder system, the RFID reader providing an interrogation signal to the transponder system and receiving the transponder system identifier;    a merchant system for receiving the transponder system identifier, the merchant system including a merchant system identifier and a merchant point of interaction device in communication with the RFID reader, the merchant system configured to match the transponder system identifier and the merchant system identifier to a user transaction request forming a merchant transaction request;    an issuer system comprising: 
 an issuer system server in communication with the merchant point of interaction device for receiving the merchant transaction request; and  
 an issuer system database including a funding source data file containing a funding source value for satisfying the merchant transaction request and a funding account protocol, the funding source data file associated with the transponder system identifier; and  
   a primary funding source containing a primary funding source value, the primary funding source in communication with the issuer system server, the primary finding source configured for one of providing value to and receiving value from the funding account data file, the primary funding source associated with the transponder system identifier,    wherein the issuer system retrieves at least a portion of the user transaction request value from the funding source data file and provides at least a portion of the finding source value to the merchant system in accordance with the funding protocol,    wherein further the primary funding source comprises a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.    
     
     
         29 . A method of transponder-reader payment comprising: 
 providing a transponder system identifier to a merchant system via radio frequency signal;    matching the transponder system identifier to the merchant system identifier and a user transaction request to form a merchant transaction request, the user transaction request containing a transaction value and a transaction identifying marker;    providing the merchant transaction request to an issuer system server, the issuer system server comprising a funding account; and    retrieving value from at least one of a primary funding source and a secondary funding source and providing the value to the funding account in accordance with a user defined funding protocol.    
     
     
         30 . The method of  claim 29  further comprising retrieving at least a portion of the user transaction value from the funding account and providing the retrieved portion of the user transaction value to a merchant system in accordance with the user defined funding protocol.  
     
     
         31 . The method of  claim 30 , wherein the funding account comprises a preloaded value data file, wherein a value substantially equivalent to the retrieved portion of the user transaction value is added to the value in the preloaded value data file according to a preload protocol.  
     
     
         32 . The method of  claim 29 , wherein the funding account comprises a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.  
     
     
         33 . The method of  claim 29 , wherein the transponder system identifier is provided to the merchant system in Track 1/Track 2 format.  
     
     
         34 . A system for completing a transaction using a transaction device comprising: 
 a RFID transaction device associated with a transaction device proxy code, the RFID transaction device comprising a transaction device storage for storing the transaction device proxy code;    a merchant system, the merchant system including a merchant system database, and a point of interaction device in communication with the RFID transaction device for transmitting and receiving data from the RFID transaction device in a contactless environment, the point of interaction device in RF communication with the RFID transaction device;    a transaction device account issuer system for maintaining a unique transaction account associated with the RFID transaction device, the transaction account correlated to a unique transaction account identifier, the transaction account for use in completing a transaction request,    wherein the transaction device account issuer system provides the unique transaction account identifier to the transaction device database,    wherein further the RFID transaction device provides the transaction device identifier to the merchant system point of interaction, the merchant system associating the transaction device identifier to the transaction request,    wherein further the merchant system provides at least the transaction device identifier and the transaction request to the issuer system,    wherein further the issuer system correlates the transaction device identifier to the unique transaction account, the issuer system satisfying the transaction request relative to the unique transaction account.    
     
     
         35 . The method of  claim 34 , wherein the unique transaction account comprises a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.  
     
     
         36 . The method of  claim 34 , wherein the transponder device proxy code is provided to the point of interaction device in Track 1/Track 2 format.  
     
     
         37 . A method for completing a transaction in a contactless environment comprising: 
 providing a proxy code to a RFID transaction device;    facilitating the providing of the proxy code to a merchant system;    facilitating the providing of the proxy code to a transaction device issuer system, the transaction device issuer system maintaining a transaction device account correlative to the proxy code; and    facilitating the completion of a transaction request correlative to the transaction device account.    
     
     
         38 . The method of  claim 37 , wherein the transaction account comprises a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.  
     
     
         39 . The method of  claim 37 , wherein the proxy code is provided to the merchant system in Track 1/Track 2 format.  
     
     
         40 . A method of transmitting data for transaction completion comprising: 
 receiving a proxy transaction device account identifier, wherein the proxy account transaction device identifier includes at least one portion of a transaction device identifier associated with a transaction account;    providing a transaction account identifier in accordance with a portion of the proxy transaction device identifier, the portion of the proxy transaction device identifier corresponding to a portion of the transaction account identifier; and    correlating the transaction account identifier with a transaction account for use in satisfying a transaction.    
     
     
         41 . The method of  claim 40 , wherein the transaction account comprises a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.  
     
     
         42 . The method of  claim 40 , wherein the proxy transaction device account identifier is received in Track 1/Track 2 format.  
     
     
         43 . A computer implemented service for updating a merchant customer account database over a network for RF payment devices, comprising: 
 a first database of information having a plurality of merchant customer records;    a remote merchant customer database having a first plurality of customer account records, each of the account records associated with a corresponding recurring billing account record;    a merchant process server for appending a merchant processing request to at least one of the first plurality of customer accounts to produce a merchant processing request data file for seeking approval of a transaction, the merchant process server receiving the transaction from an RF payment device, identifying one of the account records with the RF payment device, correlating the one account record with the corresponding recurring billing account record; and    a process server for receiving the first database of information and the merchant processing request data file, the process server configured to compare the first database of information and the merchant processing request data file to produce a first comparison data file, the first comparison data file comprising a first record including a compilation of the merchant processing requests accepted for processing by the process server for the requested transaction, the first comparison data file further comprising a second record including a compilation of the merchant processing requests rejected for processing by the process server, the process server further configured to update the first database of information in accordance with the merchant processing request data file to include approved transactions from the RF payment device on the corresponding recurring billing record.    
     
     
         44 . The service of  claim 43 , wherein the recurring billing record is associated with a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.  
     
     
         45 . The service of  claim 43 , wherein information received by the merchant process server from the RF payment device that identifies one of the account records with the RF payment device is received in Track 1/Track 2 format.  
     
     
         46 . A method of updating a merchant customer transaction account database using a computer network for RF payment devices, comprising: 
 receiving a first plurality of customer transaction account records, each of the account records being associated with a corresponding recurring billing account record;    storing the first plurality of customer transaction account records on a local database, the local database being maintained by a local process server;    storing the first plurality of customer transaction account records in a remote database, the remote database being accessed through a remote process server;    receiving by a merchant process server the transactions from an RF payment device, identifying one of the account records corresponding with the RF payment device, and correlating the one account record with the corresponding recurring billing account record;    providing a periodic registry file to the remote process server, the periodic registry file comprising an update request to the plurality of customer transaction account records for transactions requesting approval by the merchant system, the process server comparing the periodic registry file to the first plurality of customer transaction account record and updating the first plurality of customer transaction account records according to an order of process steps, the remote process server generating a maintenance file in response to the comparison of the periodic registry file to the first plurality of customer transaction account records;    providing the maintenance file to the local process server, the local process server comparing the maintenance file to the first plurality of customer transaction account records on a local database; and    updating the first plurality of customer transaction account records on a local database in response to the maintenance file to include approved transactions from the RF payment device on the corresponding recurring billing record.    
     
     
         47 . The method of  claim 46  further comprising pre-authorizing the first plurality of customer transaction account records.  
     
     
         48 . The method of  claim 46 , wherein the recurrent billing account record is associated with a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.  
     
     
         49 . A method for facilitating the re-association of an account number associated with a first transaction account to a second transaction account comprising: 
 providing a second transaction account;    receiving an account number associated with a first transaction account;    associating the account number with the second transaction account;    wherein the account number is a proxy account number associated with a transponder, wherein the proxy account number within a proxy system is configured to associate the proxy account number to more than one transaction account, and wherein the proxy account number is authorized to be used for multiple transactions.    
     
     
         50 . The method of  claim 49  wherein the first transaction account comprises a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.  
     
     
         51 . The method of  claim 49  wherein the second transaction account comprises a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.  
     
     
         52 . The method of  claim 49 , wherein the account number is received in Track 1/Track 2 format.