Integrated card reader system

Abstract

An integrated read head system includes a mobile device with an audio jack and at least one microphone input port. A read head is physically coupled to the mobile device. The read head has a slot for swiping a magnetic stripe of a financial transaction card to enable a financial transaction between a buyer and seller. The read head reads data on the magnetic stripe and produces a signal indicative of data stored on the magnetic stripe. The read head has an output jack that physically connects the read head to at least one of the audio jack or microphone port of the mobile device. The read head provides the signal to the mobile device. Card reader circuitry includes an encryption system which provides that at least a portion of the signal is encrypted.

1 . A card reader for use in a financial transaction, the card reader comprising:
 a housing;   a read head positioned within the housing, the card reader capable of being physically coupled to a seller's mobile device, the read head having a slot to allow swiping of a magnetic stripe of a buyer's financial transaction card to enable a financial transaction between a buyer and seller, the read head reading data on the magnetic stripe and producing a signal indicative of data stored on the magnetic stripe;   an output jack that enables physical connection of the read head to at least one of an audio jack or a microphone port of the seller's mobile device, enabling the card reader to communicate the signal to the mobile device; and   card reader circuitry included within the housing, the circuitry including encryption circuitry that encrypts at least a portion of the signal prior to the signal being communicated to the seller's mobile device via the audio jack; and   wherein, the signal includes pulses, at least some of the pulses used for conversion to characters when the signal is to be decoded after being communicated to the mobile device from the card reader.   
     
     
         2 . The card reader of  claim 1 , wherein the card reader circuitry includes ID circuitry to provide a unique ID of the read head to the seller's mobile device. 
     
     
         3 . The system of  claim 1 , further comprising:
 ID circuitry embedded in the card reader that includes encryption and/or decryption circuitry.   
     
     
         4 . The system of  claim 2 , wherein the ID circuitry includes at least one of, a unique ID storage, a communication subsystem that reads and transmits the unique ID from the unique ID storage, power subsystem that provides power to enable communication with the mobile device, a pathway subsystem to route signals to the output jack and a control unit, to orchestrate the communication between different systems. 
     
     
         5 . The system of  claim 3 , wherein the encryption and/or decryption system use the control unit to communicate with the mobile device  100  over the communication subsystem 
     
     
         6 . The system of  claim 1 , wherein the decoding includes error checking. 
     
     
         7 . The system of  claim 1 , wherein a receipt is sent to the buyer in response to completion of the financial transaction. 
     
     
         8 . The system of  claim 1 , wherein the financial transaction card is one or more of: credit financial transaction card, debit financial transaction card, gift financial transaction card, or a fund transfer financial transaction card. 
     
     
         9 . The system of  claim 1 , wherein the signal includes financial transaction data, the financial transaction data including one or more of: amount of the transaction, additional notes related to the transaction, authorization, or information representative of a signature of the buyer. 
     
     
         10 . The system of  claim 1 , wherein the signal includes financial transaction card information, the financial card information including one or more of: financial transaction card number, financial transaction card holder's name, expiration date, or security code. 
     
     
         11 . The system of  claim 1 , wherein the slot is sized to reduce torque applied on the card reader when the financial transaction card is swiped through the slot in order to maintain accuracy and reliability of the data read by read head. 
     
     
         12 . The system of  claim 1 , wherein acceptance and initialization by the card reader of incoming signals from a swipe of the financial transaction card are done until the signals reach a steady state, the financial transaction card swipe is detected once steady state is reached, and peaks in the incoming signals are identified when the financial transaction card swipe is detected. 
     
     
         13 . The system of  claim 1 , wherein the financial transactions is completed without displaying at least a portion of the financial transaction card information with the seller. 
     
     
         14 . An integrated card reader system, comprising:
 a seller's mobile device including an audio jack or at least one microphone input port;   a card reader that has a housing with a read head positioned therein, the card reader capable of being physically coupled to the seller's mobile device, the read head having a slot to allow swiping of a magnetic stripe of a buyer's financial transaction card to enable a financial transaction between a buyer and seller, the read head reading data on the magnetic stripe and producing a signal indicative of data stored on the magnetic stripe, the card reader including an output jack that enables physical connection of the read head to at least one of the audio jack or microphone port of the seller's mobile device, enabling the card reader to send the signal to the seller's mobile device,   card reader circuitry included within the housing, the circuitry including an encryption system that encrypts at least a portion of the signal prior to the signal being sent to the mobile device via the audio jack;   wherein, upon receiving the at least partially encrypted signal, decoding of the signal is performed in the seller's mobile device, the decoding including determining pulses in the signal and converting at least some of the pulses to characters.   
     
     
         15 . The system of  claim 14 , further comprising:
 ID circuitry embedded in the card reader that includes the encryption and/or decryption systems.   
     
     
         16 . The system of  claim 15 , wherein the ID circuitry includes at least one of, a unique ID storage, a communication subsystem that reads and transmits the unique ID from the unique ID storage, power subsystem that provides power to enable communication with the mobile device, a pathway subsystem to route signals to the output jack and a control unit, to orchestrate the communication between different systems. 
     
     
         17 . The system of  claim 16 , wherein the encryption and/or decryption system use the control unit to communicate with the mobile device  100  over the communication subsystem 
     
     
         18 . The system of  claim 14 , wherein the decoding includes error checking. 
     
     
         19 . The system of  claim 14 , wherein a receipt is sent to the buyer in response to completion of the financial transaction. 
     
     
         20 . The system of  claim 14 , wherein the financial transaction card is one or more of: credit financial transaction card, debit financial transaction card, gift financial transaction card, or a fund transfer financial transaction card. 
     
     
         21 . The system of  claim 14 , wherein the signal includes financial transaction data, the financial transaction data including one or more of: amount of the transaction, additional notes related to the transaction, authorization, or information representative of a signature of the buyer. 
     
     
         22 . The system of  claim 14 , wherein the signal includes financial transaction card information, the financial card information including one or more of: financial transaction card number, financial transaction card holder's name, expiration date, or security code. 
     
     
         23 . The system of  claim 14 , wherein the slot is sized to reduce torque applied on the card reader when the financial transaction card is swiped through the slot in order to maintain accuracy and reliability of the data read by read head. 
     
     
         24 . The system of  claim 14 , wherein acceptance and initialization by the card reader of incoming signals from a swipe of the financial transaction card are done until the signals reach a steady state, the financial transaction card swipe is detected once steady state is reached, and peaks in the incoming signals are identified when the financial transaction card swipe is detected. 
     
     
         25 . The system of  claim 14 , wherein the financial transactions is completed without displaying at least a portion of the financial transaction card information with the seller.