Method of conducting financial transactions

• US 20120005096A1
• Filed: 07/11/2011
• Published: 01/05/2012
• Est. Priority Date: 02/05/2002
• Status: Abandoned Application

• Current Assignee: Square Inc (Block, Inc. (f/k/a Square, Inc.))
• Original Assignee: Square Inc (Block, Inc. (f/k/a Square, Inc.))
• Inventors: Dorsey, Jack, Henderson, William, Grassadonia, Brian, McKelvey, Jim, Neidermeyer, Brian Joseph
• Application Number:
  US13/179,832
• Publication Number:
  US 20120005096A1
• Time in Patent Office: Days
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/347 Passive cards
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G07F 7/0886 the card reader being portable for interacting with a POS or ECR in realizing a payment transaction

Abstract

A method is provided of conducting a financial transaction with reduced likelihood of fraud. A financial transaction is entered into using a first party'"'"'s financial transaction instrument to transfer funds. The first party'"'"'s financial transaction instrument information is sent externally to a mobile device. The financial transaction instrument information is sent from the mobile device to a payment system.

Claims

1. A method of conducting a financial transaction with reduced likelihood of fraud, comprising;

entering into a financial transaction using a first party'"'"'s financial transaction instrument to transfer funds;

sending externally to a mobile device a first party'"'"'s financial transaction instrument information;

sending the financial transaction instrument information to a payment system from the mobile device; and

determining if there is fraudulent use of the financial transaction instrument prior to completion of the financial transaction.

2. The method of claim 1, wherein the mobile device is a merchant'"'"'s mobile device.

3. The method of claim 1, wherein the determination of fraudulent use is made either at the mobile device or the payment system.

4. The method of claim 2, wherein the first party'"'"'s financial transaction instrument information is sent only once to the mobile device.

5. The method of claim 1, wherein the mobile device includes a position sensor.

6. The method of claim 1, wherein a card reader with a position sensor is coupled to the mobile device.

7. The method of claim 1, further comprising:

receiving from a position-sensing device a location identifier indicating a location where the request is submitted or information that can lead to identification of the location where the request is submitted,

wherein the position-sensing device is selected from a group of eligible devices and information identifying the selected position-sensing device is received by the request processor, in advance of the request processor receiving the submitted request; and

determining whether to service the request based at least in part on the received location identifier or information.

8. The method of claim 7, wherein the submission device is embodied in an apparatus separate from an apparatus housing the position-sensing device.

9. The method of claim 1, wherein the submission device and the position-sensing device are integrated in the mobile device.

10. The method of claim 1, wherein the position-sending device is integrated in the mobile device.

11. The method of claim 1, wherein the financial transaction card information is read by a card reader, and the card and the position sending device is integrated in the card reader.

12. The method of claim 1, wherein the financial transaction instrument is selected from at least one of, credit financial transaction card, debit financial transaction card, gift financial transaction card, fund transfer financial transaction card, and other types of payment authenticating mechanisms capable of carrying out a transfer of funds from the first party.

13. The method of claim 1, wherein the first party'"'"'s mobile device is a portable electronic device that includes at least one of, software, firmware, hardware, or a combination thereof, that is capable of at least receiving a signal, decoding the signal if required, exchange information with the second party financial institution or payment network to verify the buyer and/or seller'"'"'s account information and conduct the transaction.

14. The device of claim 13, wherein the first party'"'"'s mobile device is one of a cell phone, Apple'"'"'s iPhone, iPod, iPad, iTouch, Google'"'"'s Android device and a device that provides the same functionality of any of the preceding.

15. The method of claim 1, wherein a confirmation of payment is made to the first party is response to a transfer of funds from the first party'"'"'s financial account.

16. The method of claim 1, wherein data from the financial transaction instrument is read by the mobile device by at least one of LIST

17. The method of claim 1, wherein the financial transaction instrument is a financial transaction card swiped through a card reader slot, wherein the card reader is coupled to a port of the mobile device.

18. The method of claim 17, wherein the port of the mobile device is the audio jack.

19. The method of claim 17, wherein the financial transaction card is read while minimizing card reading error.

20. The method of claim 17, wherein the card reader has ID authentication.

21. The method of claim 17, wherein a card swipe is detected once incoming signals are in a steady state.

22. The method of claim 17, wherein the mobile device does not retain confidential information of the financial transaction instrument

23. The method of claim 1, further comprising:

generating a receipt for the transaction.

24. The method of claim 17, wherein an impedance of the read head has sufficient impedance to set amplitude of a signal indicative of data stored on the magnetic stripe of the financial transaction card.

25. The method of claim 1, further comprising:

providing to the first party confirmation of payment at the buyer'"'"'s choice.

26. The method of claim 17, wherein the card reader has a sourcing power device that sources power from the mobile device through an audio jack of the merchant'"'"'s mobile device.

27. The method of claim 17, wherein the read head has a sampling rate of the signal at the audio input port or a line input port of the mobile device is at least 15 kHZ.

28. The method of claim 17, wherein the slot maintains contact between the read head and the magnetic stripe of the financial transaction card during a swipe, and decoding includes determining pulses in the signal and converting at least some of the pulses to characters.

29. The method of claim 28, wherein the slot has a width of no more than 1 mm.

30. The method of claim 28, wherein the decoding includes error checking.

31. The method of claim 28, wherein the decoding sees the beginning and ending sentinels and reconstructs data in the signal from a pattern of pulses.

32. The method of claim 17, wherein the card reader is oriented and sized to reduce torque applied on the read head.