Integrated read head device

• US 20120095867A1
• Filed: 03/08/2011
• Published: 04/19/2012
• Est. Priority Date: 10/13/2010
• Status: Active Grant

• Current Assignee: Block, Inc. (f/k/a Square, Inc.)
• Original Assignee: Square Inc (Block, Inc. (f/k/a Square, Inc.))
• Inventors: McKelvey, Jim
• Granted Patent: US 8,573,487 B2
• Time in Patent Office: Days
• US Class Current: 705/26.41
• 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 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0613 Third-party assisted
• 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

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. The signal is decoded at the mobile device. The decoding includes determining pulses in the signal and converting at least some of the pulses to characters.

Claims

1. An integrated read head system, comprising:

a seller'"'"'s mobile device including an audio jack at least one microphone input port;

a card reader that has a housing with a read head positioned therein, the read head being physically coupled to the seller'"'"'s mobile device, the read head having a slot for swiping a magnetic stripe of a buyer'"'"'s financial transaction card with the slot utilized 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 read head including an output jack that physically connects the read head to at least one of the audio jack or microphone port of the seller'"'"'s mobile device with the read head providing the signal to the mobile device, the card reader having ID circuitry and a unique ID that is sent to the mobile device;

and

wherein 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.

2. The system of claim 1, wherein the decoding includes error checking.

3. The system of claim 1, wherein the decoding includes detecting that data in the signal is from the financial card, seeing the beginning and ending sentinels and reconstructing data in the signal from a pattern of pulses.

4. The system of claim 1, wherein a confirmation of payment is made to the buyer in response to completion of the financial transaction.

5. The system of claim 1, further comprising:

determining that the buyer is present with the seller at the time of the financial transaction.

6. The system of claim 1, wherein the financial transaction card 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 piece capable of carrying out the financial transaction.

7. The system of claim 1, wherein the 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 a third party financial institution or payment network to verify the buyer and/or seller'"'"'s account information and conduct the transaction.

8. The system of claim 1, wherein the mobile device is one of a mobile digital device.

9. The system of claim 1, wherein the financial transaction is an electronic transaction conducted over the Internet or a financial transaction card present point-of-sale transaction where the buyer makes a purchase at a store front, other “

brick-and-mortar”

location, or in a presence of the seller.

10. The system of claim 1, wherein the signal includes financial transaction data selected from at least one of, amount of the transaction, additional notes related to the transaction, authorization and/or signature of the buyer.

11. The system of claim 1, wherein the signal includes financial transaction card information selected from at least one of, one or more of financial transaction card number, financial transaction card holder'"'"'s name, expiration date, and security code.

12. The system of claim 1, wherein the slot is configured 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.

13. The system of claim 1, wherein the signal produced is indicative of data stored on the magnetic stripe with minimum error via a single swipe of the financial transaction card.

14. The system of claim 1, further comprising:

passive ID circuitry in the housing of the read head to deliver a unique ID of the read head to the mobile device.

15. The system of claim 1, wherein acceptance and initialization 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.

16. The system of claim 1, wherein the financial transactions is completed without sharing financial transaction card information with the seller.

17. A method for conducting a financial transaction with a financial transaction card, comprising:

providing an integrated read head system that includes a mobile device with an audio jack coupled to a read head that includes ID circuitry and a unique ID,

swiping the financial transaction card through a slot that is in a housing that includes the read head or is integrated in the read head;

producing a signal indicative of data stored on a magnetic stripe on the financial transaction card;

sending the signal that can include the unique ID to the mobile device, and decoding the signal at the mobile device.

18. The method of claim 17, further comprising:

communicating at least a portion of the data with a third party financial institution or payment network to authorize the transaction.

19. The method of claim 17, further comprising:

sending confirmation of payment to a buyer in response to completion of the financial transaction.

20. The method of claim 17, further comprising:

confirming that a buyer is authorized to use the financial transaction card.

21. The method of claim 17, further comprising:

determining that a buyer is present with the seller at the time of the financial transaction.

22. The method of claim 17, further comprising:

confirming that payment is made with a communication channel of a buyer'"'"'s choice.

23. The method of claim 17, further comprising:

confirming payment with an electronic notification in the form selected from at least one of an, email, SMS message, tweet (message delivered via online social networking service), instant message or communication within a social network.

24. The method of claim 17, wherein the mobile device is a seller'"'"'s mobile device.

25. The method of claim 17, wherein the financial transaction card 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 piece capable of carrying out the financial transaction.

26. The method of claim 17, wherein the 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 a third party financial institution or payment network to verify the buyer and/or seller'"'"'s account information and conduct the transaction.

27. The method of claim 17, wherein the mobile device is one of a mobile digital device.

28. The method of claim 24, wherein the financial transaction is an electronic transaction conducted over the Internet or a financial transaction card present point-of-sale transaction where a buyer makes the purchase at a store front, other “

brick-and-mortar”

location, or in presence of a seller.

29. The method of claim 17, wherein financial transaction information includes data selected from at least one of, amount of the transaction, additional notes related to the transaction, authorization and/or signature of the buyer.

30. The method of claim 17, wherein the financial transaction card information includes one or more of financial transaction card number, financial transaction card holder'"'"'s name, expiration date, and security code.

31. The method of claim 17, further comprising:

coupling the housing and the read head with an output jack of the mobile device.