Radio frequency transponder stored value system employing a secure encryption protocol

Claim 1

A stored value system comprising: an RF transponder retainable by an individual public user comprising a transponder chip including a transponder memory that stores transponder data therein including a stored value, and an RF transponder antenna for transmitting the transponder data and receiving commands; a reader/writer physically accessible to a plurality of the individual public users for communicating with the transponder by way of the RF transponder antenna, including receiving the transponder data from the transponder and transmitting commands to the transponder; a secure central host computer remotely positioned relative to the reader/writer and physically inaccessible to the plurality of individual public users for communicating with a plurality of the reader/writers, for transforming the transponder data and for generating a secret key, a public key, and an encrypted validation signature from the secret key and the transformed transponder data, wherein the central host computer includes a host computer memory for storing the secret key and the public key; and a communications link between the central host computer and the reader/writer for communicating the encrypted validation signature and public key from the central host computer to the reader/writer and for communicating the transponder data from the reader/writer to the central host computer, wherein the reader/writer includes means for transforming the transponder data, for decrypting the encrypted validation signature using the public key, comparing the decrypted validation signature to the transformed transponder data and transmitting a value change command for the stored value in response to a match between the decrypted validation signature and the transformed transponder data.

Claim 4

An method for increasing a stored value in a stored value system, the stored value system comprising a secure central host computer, a plurality of reader/writers that communicate with the host computer, and an RF transponder that communicates with the reader/writers and which comprises a transponder chip having a transponder memory, said method comprising: transmitting an increase value command plus a new desired increased value for the transponder from one of the reader/writers to the transponder in response to input from an individual public user retaining the transponder and physically accessing the reader/writer; storing the new desired increased value in a temporary memory buffer of the transponder; generating a random number in the transponder, storing the random number in a random number section of the transponder memory, and transmitting the random number to the reader/writer; transmitting the random number generated by the transponder, and the new desired increased value from the reader/writer to the host computer remotely positioned relative to the reader/writer and physically inaccessible to the individual public user; computing a hash function in the host computer based upon the random number generated by the transponder, and the new desired increased value; generating an encrypted signature for the result of the hash function using a secret key; transmitting the encrypted signature from the host computer to the reader/writer; transmitting the encrypted signature from the reader/writer to the transponder; and storing the encrypted signature in a signature section of the transponder memory and the new desired increased value in a maximum value section of the transponder memory and a current value section of the transponder memory.

Claim 5

An method for increasing a stored value in a stored value system, the stored value system comprising a secure central host computer, a plurality of reader/writers that communicate with the host computer, and an RF transponder that communicates with the reader/writers and which comprises a transponder chip having a transponder memory, said method comprising: transmitting an increase value command plus a new desired increased value for the transponder from one of the reader/writers to the transponder in response to input from an individual public user retaining the transponder and physically accessing the reader/writer; storing the new desired increased value in a temporary memory buffer of the transponder; generating a random number in the transponder, storing the random number in a random number section of the transponder memory, and transmitting the random number to the reader/writer; transmitting the random number generated by the transponder, and the new desired increased value from the reader/writer to the host computer remotely positioned relative to the reader/writer and physically inaccessible to the individual public user; computing a hash function in the host computer based upon the random number generated by the transponder, and the new desired increased value; generating an encrypted signature for the result of the hash function using a secret key; transmitting the encrypted signature from the host computer to the reader/writer; transmitting the encrypted signature from the reader/writer to the transponder; and storing the encrypted signature in a signature section of the transponder memory and the new desired increased value in a maximum value section of the transponder memory and a current value section of the transponder memory.