Systems and methods for financial transaction through miniaturized card reader
A new approach is proposed that contemplates systems and methods to enable an individual to complete a financial transaction by swiping a magnetic stripe card through a card reader connected to a mobile device. The size of the card reader is miniaturized to be portable for connection with the mobile device. The card reader is configured to reliably read data encoded in a magnetic strip of the card with minimum error in a single swipe and provide a signal that corresponds to the data read to the mobile device, which then decodes the incoming signal from the card reader and acts as a point-of-sale device to complete the financial transaction. Such an approach enables a person to become either a micro-merchant (payee) or a buyer/customer (payer) without having to purchase expensive card reader devices or software.
1 . A card reader device, comprising:
a housing having a slot for swiping a magnetic stripe of a card by to complete a financial transaction;
a read head embedded in the housing for reading data stored on the magnetic stripe and for producing a signal indicative of data stored on the magnetic stripe reliably with minimum error via a single swipe of the card; and
an output jack adapted to be inserted into a microphone input associated with a mobile device for providing the signal indicative of data stored on the magnetic stripe to the mobile device.
2 . The card reader device of claim 1 wherein the card is one of a credit card, a debit card, or other types of payment authenticating piece capable of carrying out the financial transaction.
3 . The card reader device of claim 1 wherein the mobile device is one of a cell phone, Apple's iPhone, iPod, iPad, iTouch, and Google's Android device.
4 . The card reader device of claim 1 wherein size of the card reader is miniaturized to be portable with the mobile device.
5 . The card reader device of claim 1 wherein size of the card reader is miniaturized to an overall length of less than 1.5″.
6 . The card reader device of claim 1 wherein the housing is asymmetrical with respect to the slot.
7 . The card reader device of claim 1 wherein the housing is made of non-conductive material so that the card reader does not interfere with function of the mobile device.
8 . The card reader device of claim 1 wherein the housing has texture on one side that can be felt and recognized by a touch of a finger.
9 . The card reader device of claim 8 wherein the texture on one side of the housing matches with texture side of the card for correct swiping of the card via the touch of the finger.
10 . The card reader device of claim 1 wherein the slot is configured to reduce torque applied on the card reader when the card is swiped through slot in order to maintain accuracy and reliability of the data read by read head.
11 . The card reader device of claim 1 wherein base of the slot is configured as a curved base with a radius in order to increase contact between the read head and the magnetic stripe to reduce rocking and head misalignment during the swipe.
12 . The card reader device of claim 1 wherein the output jack is a TRS connector.
13 . The card reader device of claim 1 wherein the output jack is retractable within the housing.
14 . The card reader device of claim 1 wherein the output jack is extendable beyond the housing in order to accommodate connection with the mobile device having a case or a recessed plug-in socket.
15 . The card reader device of claim 1 wherein the read head is inductive.
16 . The card reader device of claim 1 wherein the read head is configured to read only one track of data from the magnetic stripe in order to reduce size and structural complexity of the read head.
17 . The card reader device of claim 1 wherein size of the housing is configured to be narrow enough to accommodate only one single read head to present tampering of the card reader.
18 . The card reader device of claim 1 further comprising a flexible spring structure to support and suspends the read head in the housing.
19 . The card reader device of claim 18 wherein the spring structure suspends the read head in the housing without using any screw.
20 . The card reader device of claim 18 wherein the spring structure is designed to be sufficiently small to fit within the miniaturized card reader.
21 . The card reader device of claim 18 wherein the spring structure is designed to be powerful enough to maintain good contact with the stripe of the card during swiping.
22 . The card reader device of claim 18 wherein the spring structure allows the suspended read head to swivel while maintaining contact pressure to track the stripe of the card during swiping.
23 . The card reader device of claim 18 wherein the spring structure positions supports for the read head inside the overall form of the spring structure, which allows the spring structure to flex without having to make one support moveable.
24 . A method for reading a card having data stored on a magnetic stripe incorporated into the card, comprising:
swiping the magnetic stripe of the card by through a slot of a card reader to complete a financial transaction;
reading data stored on the magnetic stripe and producing a signal indicative of data stored on the magnetic stripe reliably with minimum error via a single swipe of the card; and
providing the signal indicative of data stored on the magnetic stripe to a mobile device.
25 . A method for reading a card having data stored on a magnetic stripe incorporated into the card, comprising:
structuring a card reader miniaturized for connection with a mobile device to provide sufficient contact between a read head in the card reader and the magnetic stripe during a swipe of the card;
swiping the card with a magnetic stripe through a slot of the miniaturized card reader;
reading data stored in the magnetic stripe reliably and generating an analog signal indicative of data stored in the magnetic stripe;
providing the signal indicative of data stored in the magnetic stripe to the mobile device.