Mobile communication device equipped with a magnetic stripe reader

• US 7,336,973 B2
• Filed: 10/28/2003
• Issued: 02/26/2008
• Est. Priority Date: 10/30/2002
• Status: Expired due to Fees

• Current Assignee: Verifone, Inc. (Verifone Systems, Inc.)
• Original Assignee: Way Systems Incorporated (Verifone Systems, Inc.)
• Inventors: Graylin, William, Goldthwaite, Scott
• Primary Examiner(s): SOBUTKA, PHILIP
• Application Number:
  US10/695,585
• Publication Number:
  US 20040087339A1
• Time in Patent Office: 1,582 Days
• Field of Search: 455557-559, 455/550.1
• US Class Current: 455/558
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/32 using wireless devices
• CPC Class Codes: G06Q 20/3227 using secure elements embedded in M-devices
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/342 Cards defining paid or billed services or quantities
• CPC Class Codes: G07F 7/025 by means, e.g. cards, providing billing information at the time of purchase, e.g. identification of seller or purchaser, quantity of goods delivered or to be delivered
• CPC Class Codes: G07F 7/0886 the card reader being portable for interacting with a POS or ECR in realizing a payment transaction
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: H04M 17/00 Prepayment of wireline communication systems, wireless communication systems or telephone systems using a coded card to authorise calls from a telephone set H04M1/675
• CPC Class Codes: H04M 17/026 Constructional features
• CPC Class Codes: H04M 2215/2026 Wireless network, e.g. GSM, PCS, TACS
• CPC Class Codes: H04M 2215/32 Involving wireless systems
• CPC Class Codes: H04W 4/24 Accounting or billing

Abstract

A wireless mobile device is adapted to access a wireless network and includes a subscriber identification module (SIM) card slot and a magnetic stripe reader module electrically connected to the SIM card slot and thereby to the wireless mobile phone. The magnetic stripe reader module is adapted to receive and read information stored in a magnetic stripe and transmit this information to an entity through the wireless mobile device and the wireless network. The wireless mobile device of this invention is used to conduct financial transactions using a payment card comprising a magnetic stripe. The financial transactions include face-to-face or remote purchases and payment with the payment card through a financial institution.

Claims

1. A wireless mobile device adapted to access a wireless network comprising:

a subscriber identification module (SIM) card slot;

a magnetic stripe reader module electrically connected to said SIM card slot;

a memory;

a Central Processing Unit (CPU);

a SIM card connected to said SIM card slot, said SIM card authenticating said wireless mobile device to said wireless network;

a first application program associated with said memory and said CPU and being adapted to receive and transmit instructions from said magnetic stripe reader module to said wireless mobile device and the reverse; and

wherein said magnetic stripe reader module is adapted to receive and read information stored in a magnetic stripe and simultaneously transmit said information to an entity via said wireless network.

2. The wireless mobile device of claim 1 further comprising a payment card comprising said magnetic stripe and wherein said information is selected from a group consisting of payment card owner identification information, payment card identification information, authentication information, payment card issuer information, and financial institution information.

3. The wireless mobile device of claim 1 wherein said wireless mobile device is selected from a group consisting of a mobile phone, a personal digital assistant, a pager, a wireless laptop computer, a personal computer, a television remote control, and combinations thereof.

4. The wireless mobile device of claim 1 further comprising a second application program associated with said memory and said CPU and being adapted to route and transmit data and information between said wireless mobile device, said magnetic stripe reader module, and other interfaces connected to said CPU.

5. The wireless mobile device of claim 4 wherein said other interfaces are selected from a group consisting of smart card interfaces, infrared transceiver interfaces, serial communication interfaces, and contactless card reader interfaces.

6. The wireless mobile device of claim 4 wherein said first and second application programs are stored in storage selected from a group consisting of said CPU, said SIM card, an external SIM card, said magnetic stripe, and an external card.

7. The wireless mobile device of claim 4 wherein said other interfaces comprise an infrared transceiver adapted to transmit data to an external device equipped with another infrared transceiver.

8. The wireless mobile device of claim 7 wherein said external device comprises a printer.

9. The wireless mobile device of claim 1 wherein said wireless network is selected from a group consisting of a wireless wide area network (WWAN), a wireless local area network (WLAN), a private network, and a personal area network (PAN).

10. The wireless mobile device of claim 9 wherein said wireless wide area network (WWAN) is selected from a group consisting of a Global System for Mobile Communications (GSM), a General Packet Radio Service (GPRS), a Code Division Multiple Access (CDMA), CDMA 2000, and wideband CDMA (WCDMA).

11. The wireless mobile device of claim 1 wherein said wireless mobile device is used for making financial transactions between a user and said entity with a payment card comprising said magnetic stripe over said network.

12. The wireless mobile device of claim 11 wherein said financial transactions between said user and said entity are face-to-face.

13. The wireless mobile device of claim 11 wherein said financial transactions between said user and said entity are remote.

14. An electronic payment method utilized by a customer to pay a merchant with a payment card comprising a magnetic stripe for a face-to-face purchase of a good or service comprising:

placing an order by said customer for said purchase of said good or service to said merchant;

providing a wireless mobile device wherein said wireless mobile device is adapted to access a wireless network and comprises a subscriber identification module (SIM) card slot and a magnetic stripe reader module electrically connected to said SIM card slot and wherein said magnetic stripe reader module is adapted to receive and read information stored in said magnetic stripe and transmit said information via said wireless network;

entering information of said purchase in said wireless mobile device;

swiping said magnetic stripe through said magnetic stripe reader, retrieving payment card identification information from said magnetic stripe and authorizing payment for said good or service;

formatting said purchase information, said payment card identification information and said payment authorization into a first message and sending said first message to an authentication server via said wireless network;

authenticating and sending said first message by said authentication server to a financial institution;

registering said purchase information and sending approval for said payment by said financial institution to said authentication server;

forwarding said payment approval to said wireless mobile device; and

fulfilling said order to said customer by said merchant.

15. The electronic payment method of claim 14 wherein said first message comprises a format selected from a group consisting of Short Message Service (SMS), General Packet Radio Service (GPRS), Transmission Control Protocol/Internet Protocol (TCP/IP), User Datagram Protocol (UDP), Simple Mail Transmission Protocol (SMTP), Simple Network Management Protocol (SNMP), and proprietary message formats.

16. The electronic payment of claim 14 further comprising printing a receipt.

17. An electronic payment method utilized by a customer to pay a merchant with a payment card comprising a magnetic stripe for a remote purchase of a good or service comprising:

placing an order by said customer for said purchase of said good or service to a merchant server via a first network and choosing to pay via a wireless mobile device wherein said wireless mobile device is adapted to access a wireless network and comprises a subscriber identification module (SIM) card slot and a magnetic stripe reader module electrically connected to said SIM card slot and wherein said magnetic stripe reader module is adapted to receive and read information stored in said magnetic stripe and transmit said information via said wireless network;

providing said merchant server with an identification information for said wireless mobile device;

creating a digital order comprising purchase information and said identification number for said wireless mobile device by said merchant server;

routing said digital order to an authentication server via said first network;

formatting said digital order into a first message wherein said first message is adapted to be transmitted over said wireless network;

routing said first message over said wireless network to said wireless mobile device;

displaying said first message on said wireless mobile device;

requesting and receiving authorization of payment from the customer via said wireless mobile device;

swiping said magnetic stripe through said magnetic stripe reader and retrieving payment card identification and security information;

formatting authorization result and payment card identification and security information into a second message and routing said second message to said authentication server;

authenticating and routing said second message to a financial institution, wherein said financial institution is the issuer of said payment card; and

approving and executing said payment at said financial institution.

forwarding said payment approval to said authentication server and from said authentication server to said wireless mobile device; and

fulfilling said order to said customer by said merchant.

18. The electronic payment method of claim 17 wherein said wireless mobile device is selected from a group consisting of a mobile phone, a personal digital assistant, a pager, a wireless laptop computer, a personal computer, a television remote control, and combinations thereof.

19. The electronic payment method of claim 17 wherein said wireless network is selected from a group consisting of a wireless wide area network (WWAN), a wireless local area network (WLAN), a private network, and a personal area network (PAN).

20. The electronic payment method of claim 17 wherein said wireless wide area network (WWAN) is selected from a group consisting of a Global System for Mobile Communications (GSM), a General Packet Radio Service (GPRS), a Code Division Multiple Access (CDMA), CDMA 2000, and wideband CDMA (WCDMA).

21. The electronic payment method of claim 17 wherein said first and second messages comprise a format selected from a group consisting of Short Message Service (SMS), General Packet Radio Service (GPRS), Transmission Control Protocol/Internet Protocol (TCP/IP), User Datagram Protocol (UDP), Simple Mail Transmission Protocol (SMTP), Simple Network Management Protocol (SNMP), and proprietary message formats.