Systems and methods for financial transaction through card reader in communication with third party financial institution with encrypted information
View Patent ↗A system is provided that includes a transaction engine running on a mobile device. In response to a financial transaction between a buyer and a seller, the transaction uses the mobile device to accept information selected including but not limited to information from financial transaction or information pertaining to financial transaction card used by the buyer in the transaction. At least a portion of this information is communicated with a third party financial institution or payment network to authorize the transaction. Encrypted information is sent to the third party payment system authorizing a financial transaction.
1. A system of payment, comprising:
a card reader configured to be coupled to a mobile device, the card reader including:
a housing,
a read head positioned in the housing, the read head including a slot to allow swiping of a financial transaction card for reading data stored on a financial transaction card and producing a signal indicative of data stored on the financial transaction card,
an encryption system configured to encrypt at least a portion of information associated with the signal wherein the encryption system is configured to communicate with the mobile device via a control unit, and wherein the control unit is coupled to the mobile device via a pathway subsystem configured to route signals to an audio plug of the mobile device; and
a transaction engine of the mobile device, that in operation:
communicates at least a portion of information derived from the encrypted information to a third party payment system associated with a buyer's financial account,
in response to the third party payment system authorizing a financial transaction, initiates transfer of funds from the buyer's financial account associated with the financial transaction card to an account of a merchant associated with the card reader, and
provides for communication of at least a portion of transaction information to the buyer.
2. The system of claim 1 , further comprising:
ID Circuitry in the card reader in communication with the transaction engine.
3. The system of claim 1 , wherein the mobile device includes an interactive user application.
4. The system of claim 3 , wherein the interactive user application allows for the buyer to confirm an amount of the financial transaction.
5. The system of claim 3 , wherein the interactive user application provides for the buyer to execute a signature at the mobile device.
6. The system of claim 1 , wherein the third party payment system in operation provides the buyer with a receipt for the financial transaction.
7. The system of claim 1 , wherein the transaction engine uses environmental information of a transaction location to assess a risk associated with the transaction.
8. The system of claim 7 , wherein the mobile device provides Global Positioning System (GPS) information that is used to determine if a location of the transaction is in a high crime risk area.
9. The system of claim 8 , wherein in response to the GPS information, a risk is associated with the transaction.
10. The system of claim 1 , wherein the third party payment system provides the buyer with coupons or other promotional offers made by vendors.
11. A method of payment, comprising:
coupling a card reader to a mobile device, the card reader including an encryption system configured to provide encrypted information from at least a portion of information relative to a transaction between a buyer and a merchant;
in relation to a financial transaction between the buyer and the merchant, conveying at least a portion of the encrypted information from the card reader to the mobile device using the encryption system, wherein the encryption system is coupled to the mobile device via a control unit, and wherein the control unit is coupled to the mobile device via a pathway subsystem;
communicating at least a portion of the encrypted information to a transaction engine of the mobile device;
communicating at least a portion of information derived from the encrypted information to a third party payment system associated with a buyer's financial account; and
authorizing by the third party payment system payment for the financial transaction; and
initiating a transfer of funds from an account of the buyer to the merchant associated with the card reader.
12. The method of claim 11 , further comprising:
communicating to the third party payment system an ID of the card reader.
13. The method of claim 11 , further comprising:
using an interactive user application of the mobile device for the financial transaction.
14. The method of claim 13 , further comprising:
confirming by the buyer an amount of the financial transaction.
15. The method of claim 13 , further comprising:
executing a signature of the buyer at the mobile device.
16. The method of claim 11 , further comprising:
providing the buyer by the third party payment system with a receipt for the financial transaction.
17. The method of claim 11 , further comprising:
using environmental information of a transaction location to assess a risk associated with the transaction.
18. The method of claim 17 , further comprising:
providing Global Positioning System (GPS) information to determine if a location of the transaction is in a high crime risk area.
19. The method of claim 18 , further comprising:
determining a risk associated with the transaction.
20. The method of claim 11 , further comprising:
providing the buyer by the third party payment system with coupons or other promotional offers made by vendors.