System and method for securely loading, storing and transmitting magnetic stripe date in a device working with a mobile wallet system

• US 9,022,285 B2
• Filed: 03/01/2013
• Issued: 05/05/2015
• Est. Priority Date: 03/01/2013
• Status: Active Grant

• Current Assignee: Samsung Electronics Co. Ltd.
• Original Assignee: LoopPay Incorporated
• Inventors: Graylin, William W
• Primary Examiner(s): LEE, SEUNG H
• Application Number:
  US13/781,964
• Publication Number:
  US 20140246490A1
• Time in Patent Office: 795 Days
• Field of Search: 235/379, 235/383, 235/493, 235/380
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/326 Payment applications installed on the mobile devices
• CPC Class Codes: G06Q 20/3272 using an audio code
• CPC Class Codes: G06Q 20/347 Passive cards
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/3823 combining multiple encryption tools for a transaction

Abstract

A system and method for a payment card capture, storage and transmission device with magnetic stripe transmission capabilities without contact with the magnetic reader head including a magnetic field transmitter including a driver and inductor, a microprocessor, a memory storage or secure element, a battery, a magnetic stripe reader (MSR), an audio jack interface working in conjunction with a consumer mobile communication device and wallet application for capturing magnetic stripe card data, storing the data securely, and transmitting such data to a merchant'"'"'s point of sale (POS) terminal, checkout system, or other MSR device. The system provides a convenient buying experience for buyers, and secure and informative transactions for sellers.

Claims

1. A system for a magnetic stripe card capture, storage and transmission device comprising:

a mobile communication device; and

a magnetic stripe transporter (MST) comprising a microprocessor, a magnetic stripe reader (MSR), a magnetic field transmitter including a driver and an inductor, a battery and recharging circuit, a memory means, an audio jack interface and a communication interface;

wherein the MST interfaces with the mobile communication device through the audio jack interface or the communication interface; and

wherein the MST is adapted to capture magnetic stripe data and store the magnetic stripe data encrypted into the memory means and to decrypt and transmit the magnetic stripe data to a merchant point of sale (POS) or other MSR device.

2. The system of claim 1, wherein the mobile communication device comprises a mobile wallet application and a valid mobile wallet account that initializes and unlocks the MST upon proper authentication of the mobile wallet account, wherein the MST can only operate with one valid mobile wallet account at a time.

3. The system of claim 2, wherein the magnetic stripe data is payment card data and the mobile communication device further comprises a payment POS or checkout application that interacts with the MST and accepts the payment card data from the MST.

4. The system of claim 1, wherein the mobile wallet application interacts with the MST to provide modes of operation including at least one of an Initialization and Reset Mode, a Load Card Delete Card Mode, a Transmit &

Use Mode, a Disconnected Transmit Mode, and a POS Card Reader Mode.

5. The system of claim 4, wherein the MST operated in the Initialization Reset Mode is configured to allow a user to pair a new or reset the MST to a valid mobile wallet account through the wallet application, and associate a serial number of the MST to the specific valid mobile wallet account such that a paired MST can only be accessed or used with the specific valid mobile wallet account it is paired with.

6. The system of claim 4, wherein the MST operated in the Load Card Delete Card Mode is configured to allow a user to swipe a card on the MSR of the MST, convert card data into encrypted card track data to be stored to the memory means on the MST, wherein the encrypted card track data is also transmitted to a wallet server via the mobile communication device and wallet application such that the server can decrypt the card track data and match the card track data to a name of the mobile wallet account.

7. The system of claim 4, wherein the MST is configured to allow a card issuer and wallet application provider to load an encrypted or non-encrypted card track data to the memory means on the MST remotely from a server.

8. The system of claim 4, wherein the MST is configured to allow a wallet application provider to load loyalty account information with magnetic stripe data in a discretionary field of the track data, to be read by the issuer upon completion of a transaction.

9. The system of claim 4, wherein the MST operated in the Transmit and Use Mode is configured to allow a user to select a specific payment card or non-payment card stored in the MST as a default card to transmit, and to change the default card.

10. The system of claim 4, wherein the MST operated in the Disconnected Transmit Mode is configured to allow a user to unlock the MST after authentication of the wallet application to the MST and allow the MST to be unplugged or disconnected from the mobile communication device and remain on for a predefined period of time to transmit a default payment card stored on the MST to the MSR of the merchant POS system or other MSR device in response to a pressing of a button on the MST.

11. The system of claim 4, wherein the MST operated in the Disconnected Transmit Mode is configured to allow magnetic stripe data to be transmitted by enabling a default card to be transmitted without first authenticating to the wallet account.

12. The system of claim 1, wherein the mobile communication device is one of a smartphone, a tablet, and a personal computer.

13. The system of claim 1, wherein the MST further comprises a light-emitting diode (LED) indicator adapted to illuminate upon a transmission and indicate a battery capacity.

14. The system of claim 1, wherein the MST stores payment card track data in a secure memory means or secure element that can be either on the MST or on the mobile communication device.

15. The system of claim 14, wherein the MST is configured to read a magnetic payment card'"'"'s track data and to transmit the payment card track data to a POS application on the mobile communication device to be transmitted to a payment server for decryption and processing with merchant account information.

16. A method for a magnetic stripe card capture, storage and transmission device, comprising:

pairing a magnetic stripe transporter (MST) with a mobile wallet account and associating a serial number of the MST to the mobile wallet account;

initializing and unlocking the MST upon receiving a proper authentication of the mobile wallet account;

capturing magnetic stripe card data;

storing the magnetic stripe card data encrypted into a memory means of the MST;

decrypting the encrypted magnetic stripe card data; and

transmitting the decrypted magnetic stripe card data to a merchant point of sale (POS) or other magnetic stripe reader (MSR) device.

17. The method of claim 16, further comprising allowing a user to reset the MST.

18. The method of claim 16, further comprising:

allowing a user to swipe a card on a magnetic stripe reader (MSR) of the MST;

converting data on the card into encrypted card track data;

storing the encrypted card track data to a secure memory means of the MST; and

transmitting the encrypted card track data to a wallet server via a mobile communication device such that the wallet server can decrypt the encrypted card track data and match the card track data to a name of the mobile wallet account.

19. The method of claim 16, further comprising allowing a user to select a specific payment card stored in the MST as a default card to transmit in a connected or disconnected mode.

20. The method of claim 16, further comprising:

allowing a user to unlock the MST after authentication of a wallet application to the MST;

allowing the MST to be disconnected from a mobile communication device and remain on to allow a user or a merchant to transmit a default card on the MST to an MSR of the merchant POS system upon activation of a button on the MST.