Read head device with selected output jack characteristics

• US 20120095868A1
• 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 8,876,003 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

A read head is configured to be coupled to the mobile device. The read head is positioned in a housing. 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 from the magnetic stripe and produces a signal indicative of data stored on the magnetic stripe. The read head includes an output jack adapted to be inserted at least one of the audio jack or microphone input port of the mobile appliance to provide a signal indicative of data stored on the magnetic stripe to, the mobile device. The output jack extends at least 2 mm from the housing.

Claims

1. A card reader, comprising:

a housing;

a read head positioned in the housing and configured to be coupled to a mobile device, the read head having 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 reading data from the magnetic stripe and producing a signal indicative of data stored on the magnetic stripe and an output jack adapted to be coupled and de-coupled from at least one of an audio jack or microphone input port of the mobile device for providing the signal indicative of data stored on the magnetic stripe to the mobile device;

the output jack having a length extending from the housing of at least 2 mm, the mobile device including a decoding engine with peak detectors and digitizers with different process combinations and parameters run in response to a hardware platform of the mobile device.

2. The card reader of claim 1, wherein the output jack has a length extending from the read head in a range of 2-5 mm.

3. The card reader of claim 1, wherein the output jack has a diameter of no greater than 3.5 mm and a base of the output jack is no more than 5 mm.

4. The card reader of claim 1, wherein a longitudinal plane of the output jack lies within the plane that the financial transaction card travels in the slot within 3 mm.

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

6. The card reader of claim 1, further comprising:

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

7. The card reader 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.

8. The card reader 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 a buyer and/or seller'"'"'s account information and conduct the transaction.

9. The card reader of claim 1, wherein the mobile device is one of a mobile digital device.

10. The card reader 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 the purchase at a store front, other “

brick-and-mortar”

location, or in a presence of the seller.

11. The card reader 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.

12. The card reader 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.

13. The card reader of claim 1, wherein the slot is configured to reduce torque applied on a card reader when the financial transaction card is swiped through the slot in order to maintain accuracy and reliability of the data read by the read head.

14. The card reader 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.

15. The card reader 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.

16. The card reader 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.

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

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

coupling a read head positioned in a housing to a mobile device with an output jack of the read head extending at least 2 mm from the housing;

swiping the financial transaction card through a slot in the read head;

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

sending the signal to the mobile device; and

using a decoding engine with peak detectors and digitizers with different process combinations and parameters run in response to a hardware platform of the mobile device to decode the signal with the mobile device.

19. The method of claim 18, further comprising:

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

20. The method of claim 18, further comprising:

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

21. The method of claim 18, further comprising:

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

22. The method of claim 18, further comprising:

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

23. The method of claim 18, further comprising:

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

24. The method of claim 18, 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.

25. The method of claim 18, wherein the mobile device is a seller'"'"'s mobile device.

26. The method of claim 18, 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.

27. The method of claim 18, 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 a buyer and/or seller'"'"'s account information and conduct the transaction.

28. The method of claim 18, wherein the mobile device is one of a mobile digital device.

29. The method of claim 25, 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 a purchase at a store front, other “

brick-and-mortar”

location, or in presence of a seller.

30. The method of claim 18, 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 a buyer.

31. The method of claim 18, 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.

32. The method of claim 18, further comprising:

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