Edition: U.S. / Global

PATENTS; Taxis with modems that let you charge the ride, and a credit card that tries to get your attention.

By Sabra Chartrand
Published: April 8, 2002

CREDIT cards are ubiquitous, and so are taxis in big cities. So why hasn't anyone put the two together?

Amos Tamam figures the time has come. He has received a patent for a system that allows people to pay cab fare with the swipe of a credit card. Mr. Tamam says his invention would also make it possible for those who leave cellphones, umbrellas, purses and other belongings in taxis to have an immediate record of the cab's medallion or other identifying number.

Mr. Tamam, who lives in Great Neck, N.Y., designed a system that uses a conventional taxi meter connected to a credit card reader and a wireless modem. The modem links the system to the credit card's financial institution, where the account is authenticated and the charge approved. The system, which could accept credit, debit, smart or private banking cards, would also have a receipt printer.

The fare for distance traveled plus idling time would be displayed on the meter, as is the usual practice in most taxi fleets. In places like Washington, where fares are calculated by travel in or between geographic zones, the driver and passenger would agree on the stated charge. Any tolls or other charges like those for extra luggage could be added to the total.

The passenger or the driver would then swipe the rider's card through the card reader. The passenger could use a keyboard to add a tip to the total fare.

''The approval or denial from the financial institution typically takes less than 10 seconds,'' Mr. Tamam writes in his patent.

Once the charge is approved, the printer will provide a receipt of the fare and tip, along with other transaction data that could prove useful.

Harried taxi passengers who forget belongings in taxis rarely remember the license number or the driver's name from the taxi they took. By the same token, drivers who find lost items usually do not know the name of the last person who rode in the cab. Mr. Tamam says with his system, both passengers and drivers will have a record of taxi travel that can be used to match lost items with their owners.

The system can ''contain different standard messages'' about lost and found items, the patent says. A passenger can report a lost item to the fleet owner, the local taxi commission or other officials. Those agencies can then send a message to the relevant driver. The message system will also work in reverse, so a driver can report lost items.

The wireless modem can also connect the system to a taxi company's base, with other taxis or to the Internet. In that case, Mr. Tamam envisions that each taxi will have its own Internet address, so messages or data can be relayed among cabs via the Web.

Finally, Mr. Tamam says his system documents and reconciles driving records for taxi fleets. A summary of credit card transactions would include the fare, tolls and tips, the time and date of travel and miles driven. Cabbies could use the system to generate a report of the day's total fares and to reconcile credit card charges. Mr. Tamam received patent No. 6,347,739.

Which Card to Use? Listen for the Beep

Competition among the financial institutions that issue credit cards is fierce, and one of the biggest rivalries involves customer loyalty. The card companies want people to use just one credit card every time they open their wallets, no matter how many cards they carry.

So the institutions offer myriad enticements or awards for using cards -- like cash-back bonuses or frequent flier miles for every dollar spent. They also issue cards with distinct physical attributes like a holder's picture, images of an alma mater or theme illustrations like wildlife, celebrities or art scenes.

But three inventors at Walker Digital in Stamford, Conn., say those gimmicks are not enough to remind card holders to use a specific credit card.

Instead, they have patented a card with a sensor that triggers a circuit to flash lights or beep sounds to attract attention when that wallet is opened.

Because the patent does not belong to a financial institution, it presumably could be licensed to more than one maker of credit, debit or smart cards. That might leave a consumer who agreed to accept such cards with a wallet full of beeping, flashing plastic.

The invention relies on a sensor in the card that detects physical changes around it.

''The predefined physical change may be, for example, a change in ambient light, pressure, or noise,'' the Walker patent says. ''Components for sensing these types of physical change can include a solar cell, pressure sensor or a microphone.''

The card can then emit ''different tones or phrases'' or ''intermittent pulses of light or light pulses produced according to a predetermined pattern.'' The system would be powered by a solar cell or a thin film lithium battery. A switch would allow the system to be set for sound or light.

The patent was awarded to Jay Walker, Bruce Schneier and Magdalena Mik.

Mr. Walker holds more than 150 patents for sales, merchandising, vending, telecommunications and electronic gambling. They include a 1998 patent for a method of pricing options for airline tickets that was incorporated into Priceline.com, a Web site founded by Mr. Walker that popularized so-called reverse bidding.

The three inventors received patent No. 6,325,284.

Photo: Jay Walker and two others have designed credit cards with sensors. (Newsmakers)