Abstract:
A secure device for reading a card having data stored on a magnetic stripe incorporated into a card. The card reader device reads and then encrypts the data, then outputs an analog signal that is indicative of the encrypted data. By way of an electrical plug-and-jack connection to a cell phone, the output signal is passed to circuitry in the cell phone where it is processed to extract the encrypted data. For security purposes, the cell phone is not enabled to decrypt the data, and therefor transmits the encrypted data to a remote server that is so enabled. When the card is used for financial transactions, the remote server cooperates with appropriate financial systems to process the transaction using data from the card plus transaction details that were entered by the cell phone user.

Description:
CROSS-REFERENCE TO RELATED APPLICATIONS 
       [0001]    This application claims the benefit of U.S. Provisional Patent Application No. 61/453,137, filed Mar. 16, 2011 by Peter R. Lindsay, which is incorporated in its entirety by reference herein. 
     
    
     BACKGROUND 
       [0002]    This disclosure relates to a card reader device for use with a cellular phone for reading a magnetic stripe card and more particularly to a portable card reader device which senses the magnetically recorded information stored on a magnetic stripe card and conveys this sensed information via an analog waveform to a cell phone for further processing. 
         [0000]    This disclosure further relates to an improvement wherein the sensed information is encrypted for providing security. Said improvement is disclosed as apparatus and method steps that are added to those disclosed in U.S. Pat. No. 7,810,729 granted to Morley, Jr. on Oct. 12, 2010. 
         [0003]    Plastic cards having a magnetic stripe embedded on one side of the card are prevalent in every day commerce. These cards are used in various transactions such as to pay for purchases by using a credit card, a debit card, or a gasoline charge card. A charge card or a debit card may also be used to transact business with a bank through use of an automated teller machine (ATM). The magnetic stripe card is capable of storing data by modifying the magnetism of magnetic particles embedded in the stripe. The data stored on the magnetic stripe may be sensed or read by swiping the stripe past a read head. The analog waveform obtained by sensing the magnetic stripe must undergo a process known as decoding to obtain the digital information stored in the magnetic stripe of the card. Conventional magnetic stripe card readers are comprised of both relatively simple sensing components as well as the more costly and complex decoding and communication components. 
         [0004]    It is typical in a magnetic stripe card to locate the magnetic stripe 0.223 inches from an edge of the card with the stripe being 0.375 inches wide. The magnetic stripe contains up to three tracks of digital data with each track being 0.110 inches wide. Tracks one and three are typically recorded at 210 bits per inch, while track two typically has a recording density of 75 bits per inch. Each track can either contain 7-bit alphanumeric characters, or 5-bit numeric characters. Track one standards were created by the airlines industry, the International Air Transport Association. Track one can contain information reserved for the bank that issued the card and magnetically encoded data like the primary account number, the user&#39;s name, a country code, an expiration date for the card, and 79 characters of discretionary data, all mixed in with separators and other specialized computer characters. The second track, the track most commonly used, is in a format defined by the American Bankers Association. The second track can contain the primary account number, the country code, the card&#39;s expiration date, 40 characters of discretionary data, and separator characters. The third track is in a format called THRIFT and was originally intended for use with ATMs. Unlike tracks one and two, which are read only tracks, the third track was intended for read and write applications. However, for the most part, the third track is hardly ever used. Further, the International Organization for Standardization (ISO), an international-standard setting body, has a set of standards for describing the physical dimensions and recording technique on identification cards which are known as ISO 7810 and 7811. 
         [0005]    Magnetic stripe cards having these standard specifications can typically be read by point-of-sale devices at a merchant&#39;s location. When the card is swiped through an electronic card reader at the checkout counter at a merchant&#39;s store, the reader will usually use its built-in modem to dial the number of a company that handles credit authentication requests. Once the account is verified and an approval signal will be sent back to the merchant to complete a transaction. 
         [0006]    Although magnetic stripe cards are universally used by merchants there is no way for an individual to take advantage of the card to receive a payment from another individual (who is not a merchant) by swiping the card through a simple reader attached to his cell phone. For example, one individual may owe another person money for a debt, but one way to pay the debt is to provide cash or a check. It would be convenient to be able to use a credit card or a debit card to pay off the debt. In addition, it is advantageous for an individual to make payment to another individual or merchant by swiping his magnetic stripe card through a reader connected to a cell phone. However, there is presently no way for an individual to send payment to an individual or merchant through the use of a magnetic stripe card by using a simple magnetic stripe card reader connected to a cell phone. 
         [0007]    Therefore, it would be desirable to have a simple card reader device that would allow an individual to receive or send payment through the use of a magnetic stripe card. It is also desirable to provide a simple portable card reader device that can be connected to a cell phone with the cell phone acting as a secure point-of-sale device. The cell phone can have an application programmed therein to submit the card data to a company or a third party that handles credit authentication requests. 
       BRIEF SUMMARY OF THE INVENTION 
       [0008]    In one form of the present disclosure, a card reader device for reading a card having data stored on a magnetic stripe incorporated into the card the card reader device comprises a read head for passing a magnetic stripe of a card by to read data stored on a magnetic stripe and for producing a signal indicative of data stored on a magnetic stripe, a signal setting device for setting an amplitude of the signal indicative of data stored on a magnetic stripe, an encrypting microprocessor, and an output jack adapted to be inserted into a microphone input associated with a cell phone for providing the signal indicative of an encrypted form of the data stored on a magnetic stripe to a cell phone, wherein application software resident on the cell phone adds pertinent transaction data to the encrypted card data and transmits both to a decryption server (provided by a service entity), which decrypts the card data, decodes it and then passes all of the data to the authorizing entity indicated by the decoded information. 
         [0009]    In another form of the present disclosure, a card reader device for reading a card having data stored on a magnetic stripe incorporated into the card, uses an amplifier for amplifying the signal indicative of data stored on a magnetic stripe, instead of the signal setting device for setting an amplitude of the signal. 
         [0010]    In light of the foregoing comments, it will be recognized that a principal object of the present disclosure is to provide a secure card reader device comprised of a very simple external device with encryption capability to be used in conjunction with a cell phone and a decryption service. 
         [0011]    A further object of the present disclosure is to provide a card reader device that can read and encrypt data stored on a magnetic stripe card by sensing the recorded data waveform and transmitting an encrypted data waveform to a cell phone. 
         [0012]    Another object of the present disclosure is to provide a card reader device that can read one or more tracks of data stored on a magnetic stripe card. 
         [0013]    A further object of the present disclosure is to provide a card reader device that is of simple construction and design and which can be easily employed with highly reliable and secure results. 
         [0014]    A still further object of the present disclosure is to provide a card reader device that can be easily carried or stored, but which cannot be used to illegitimately obtain magnetic card data. 
         [0015]    Another object of the present disclosure is to provide a card reader device that may be constructed in various shapes, designs, or forms. 
         [0016]    A still further object of the present disclosure is to provide a card reader device that can amplify data read from a magnetic stripe card. In some constructions an amplifier resident in a card reader device may require power which may be provided by a cell phone. 
         [0017]    Another object of the present disclosure is to provide a card reader device that can operate with existing magnetic stripe cards. 
         [0018]    These and other objects and advantages of the present disclosure will become apparent after considering the following detailed specification in conjunction with the accompanying drawings, wherein: 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0019]      FIG. 1  is a side perspective view of a card reader device constructed according to the present disclosure; 
           [0020]      FIG. 2  is a schematic diagram of a card reader device constructed according to the present disclosure; 
           [0021]      FIG. 3  is a schematic diagram of another embodiment of a card reader device constructed according to the present disclosure; and 
           [0022]      FIG. 4  is a flowchart of a method of operation of a card reader device constructed according to the present disclosure. 
       
    
    
     DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS 
       [0023]    Referring now to the drawings, wherein like numbers refer to like items, number  210  identifies a preferred embodiment of a card reader device constructed according to the present disclosure. With reference now to  FIG. 1 , the card reader device  210  is shown to comprise a housing  12  having a slot  14  and an output jack  16  extending out from the housing  12 . The jack  16  is adapted to be inserted into a socket  18  such as a microphone input or a line in audio input of a cell phone  20 . The jack  16  may be a TRS (tip, ring, sleeve) connector also known as an audio jack, phone plug, jack plug, stereo plug, mini-jack, or mini-stereo audio connector. The jack  16  may be formed of different sizes such as miniaturized versions that are 3.5 mm or 2.5 mm. It is also possible and contemplated that the jack  16  may be retractable within the housing  12 . 
         [0024]    The slot  14  is wide enough and deep enough to accept a card having a magnetic stripe. In particular, the slot  14  is deep enough that the magnetic stripe will fit within the slot  14 . The slot  14  also has a length that is less than the length of the card to be inserted into the slot  14 . However, it is also possible and contemplated that the slot  14  may have other lengths if desired, for a given application. The housing  12  may take on different shapes and sizes, as will be discussed further herein. 
         [0025]      FIG. 2  illustrates a schematic diagram of the card reader device  210 . The card reader device  210  comprises a read head  22 , such as an inductive pickup head, having a coil  24  connected to a signal amplitude setting device  26  such as a resistor which is connected to an analog to digital (A/D) converter  275 . A lead  28  connects the A/D converter  275  to the coil  24  to complete the amplitude setting circuit, for passing an analog signal to the A/D converter  275 . The A/D converter  275  is connected for passing the digital data to an encrypting microprocessor  277 , which in turn is connected for passing the encrypted digital data to a digital to analog (D/A) converter  279 . Thus the encryption process does not interfere with the electrical (analog) transmission of data from the card reader device  210  to the cell phone  20 . 
         [0026]    A card  30 , such as a credit card, has a magnetic stripe  32  associated with the card  30 . As has been previously discussed, the magnetic stripe  32  may have three tracks with each of the tracks containing data. The card reader device  210  is capable of reading one track, usually track two, when the device  210  is connected to the microphone input of the cell phone  20 . As the magnetic stripe  32  of the card  30  is passed by the read head  22  the read head  22  reads data or information stored in the magnetic stripe  32 . Although not shown, the card  30  is inserted into the slot  14  in the housing  12  and the card  30  is swiped or passed by the read head  22 . Data stored in the magnetic stripe  32  may be in the form of magnetic transitions as described in the ISO 7811 standards. As the card  30  moves past the read head  22 , magnetic transitions representing data induce a voltage in the coil  24 . A voltage signal or waveform produced by the coil  24  is provided to the resistor  26  with the resistor setting the amplitude of the waveform. This waveform is digitally encrypted in devices  275  and  277 , then converted back to an analog signal which is a new waveform indicative of an encrypted form of the magnetic stripe data, and this is sent via the jack  16  into the microphone input socket  18  of the cell phone  20 . A pair of wires  34  and  36  connect the socket  18  to an amplifier  38 . The amplifier  38  amplifies the waveform received from the card reader device  210 . The amplified waveform is provided to an analog to digital converter device (ADC)  40  where the waveform in analog form is converted into digital samples of the analog waveform. The digital samples are sent to a microprocessor  42  for further processing, as will be explained. For the sake of clarity and brevity most of the components of the cell phone  20  have not been shown. However, the cell phone  20  may also include such components as memory including flash ROM, SRAM, a camera, a battery, LCD driver, a display, an antenna, a speaker, a Bluetooth circuit, and WIFI circuitry. The flash ROM may contain programs, applications, and/or an operating system for the cell phone  20 . 
         [0027]    The card reader device  210  is capable of being connected to the cell phone  20  for providing data stored in the magnetic stripe  32  of a card  30 . Once connected any magnetic stripe  32  that is swiped in the slot  14  is read by the read head  22 . The magnetic read head  22  generates an analog waveform that results from changes in magnetization along the stripe  32  relative to the movement between the read head  22  and the stripe  32 . The resistor  26  sets the amplitude of this signal which is encrypted (a digital process applied to the data carried in the waveform) and then provided to the cell phone  20 . This signal is then amplified by the amplifier  38  contained in the cell phone  20 . The ADC  40  of the cell phone  20  samples the amplified analog waveform at a given sampling rate and generates a stream of digital values or samples. These digital samples are processed by the processor  42  that can in turn provide information to a host system (server) which can decrypt the digital data and then pass it to an entity (e.g., third party) that handles credit authentication requests. The processor  42  can communicate with the host decryption server via the cell phone network, WIFI, Bluetooth or any other mode available to it. The host system may also send a signal to the cell phone  20  to indicate that the transaction has been completed (e.g., the decryption service will relay the signal returned by the credit authentication entity). 
         [0028]    The processor  42  may be controlled by a program or an application stored in memory or in a program storage area. For security purposes, the program or application in the cell phone is not enabled to decrypt the digital data, and therefor is not able to read or store the card information in a usable form. The decryption server can be programmed to decode the unencrypted digital data and use the decoded signals to contact an appropriate third party for authorizing a transaction. In this manner, a payment from the cardholder&#39;s account can be transferred to the account of a merchant that accepts credit card transactions. The merchant&#39;s account identification may be programmed into the cell phone or otherwise tied to the specific cell phone being used. The cell phone may send its identification information along with the encrypted card information, and the decryption server could link the phone with a predetermined merchant&#39;s account. 
         [0029]    With reference now to  FIG. 3 , another embodiment of a card reader device  80  is illustrated. The card reader device  80  comprises a housing  82  having an inductive read head  84  with coil  86  connected to an amplifier  88  which is connected to an output jack  90 . The output jack  90  extends out of the housing  82  and is adapted to be inserted into a line in audio input or a stereo line in input associated with a cell phone (not shown). A wire  92  connects the jack  90  to the coil  86 . Although not shown in this particular drawing, a slot is formed in the housing  82  near the coil  86  to allow a card having a magnetic stripe to be passed by the coil  86 . Data or information stored in the magnetic stripe is read by the coil  86 . The coil  86  produces a waveform indicative of data stored in the magnetic stripe and this waveform is provided to the amplifier  88 . The amplified waveform is then transmitted to the cell phone via the jack  90 . The amplified waveform may be provided to an ADC device for converting into digital samples to be processed by a microprocessor in the cell phone, and then sent to the decryption server and so on, as described hereinabove. 
         [0030]    Given the encryption circuitry (device components  275 ,  277 ,  279 ) illustrated and described hereinabove for the card reader device  210 , it should be obvious that equivalent circuitry (doubled for stereo signals) can be easily added to the card reader device  80  between the amplifier  88  and the output jack  90 , thereby encrypting the card data that is indicated by the analog signal waveform which is passed to the cell phone. 
         [0031]    Since the card reader device  80  uses the line in audio input of the cell phone, the card reader device  80  is capable of transmitting two tracks from the card being read. As has been previously discussed, a magnetic stripe may have up to three tracks with each of the tracks containing data. For example, the card reader device  80  may read tracks one and two and send these signals to the cell phone as the left and right channels of a stereo signal. However, with the card reader device  80  any two of the three tracks, usually tracks one and two, may be read and encrypted by the card reader device  80  and passed to the cell phone when the jack  90  is connected to the stereo line in inputs of the cell phone. In some situations or constructions, it is possible that the amplifier  88  may need to be powered. The amplifier  88  may be powered from a power source resident in the cell phone to which the device  80  is connected. In like manner, the A/D converter  275 , the encrypting microprocessor  277 , and the D/A converter  279  may be powered as needed. 
         [0032]      FIG. 4  illustrates a flowchart diagram of a method of operation  200  of the card reader device  210 . The method  200  begins operation at a step  102  in which a magnetic stripe card  30  is swiped through the slot  14 . In a next step  104 , the read head  22  reads data stored in the magnetic stripe  32  and generates an analog signal or waveform indicative of data stored in the magnetic stripe  32 . The waveform then has its amplitude set by the resistor  26  in a step  106 . 
         [0033]    In a next step  106   a , the A/D converter  275  converts the waveform to digital data (e.g., samples) which is in suitable form for encryption by the encrypting microprocessor  277  in the next step  106   b . Then, in step  106   c , the D/A converter device  279  converts the encrypted digital data into an analog signal waveform so that the encrypted data from the card can be passed through the output jack  16  into the analog circuitry of the cell phone. 
         [0034]    Next, in a step  108 , the waveform is provided to the cell phone  20  via the output jack  16  through the socket  18 . In a next step  110 , the amplifier  38  amplifies the waveform. The waveform is provided to the analog to digital converter device  40  for conversion to a digital signal in a step  112 . 
         [0035]    Next, in step  112   a , the cell phone sends the still-encrypted digital data to a decryption server, where, in step  112   b , the digital data is decrypted to become a clear digital data string. Then the decrypting server decodes the digital card data (signal) in a step  114 . 
         [0036]    In a next step  116 , the decrypting server contacts a third party, determined according to the decoded data, to authorize a transaction using the decrypted and decoded data. The third party either authorizes or denies the transaction in a last step  118 . 
         [0037]    For example, if the third party authorizes the transaction then money deducted from the account of the cardholder is transferred into an account associated with the cell phone owner or vice versa. In this way, a debt can be collected or paid by use of the card reader device  210 . Further, the card reader devices  210  or  80  may be employed to transact a one-way transaction in which money can be credited to an account. In essence, the card reader devices  10  or  80  allow a user to become either a micro-merchant (payee) or a customer (payer) without having to purchase expensive card reader devices or software. 
         [0038]    Furthermore, security measures that are normally built into the prior art expensive card reading devices/software are now also built into the miniaturized card reader device that is improved by adding a card data encryption device such as the device components  275 ,  277 , and  279  shown (in  FIG. 2 ) built into the improved/secure card reader device  210 , and also shown implemented in the method  200 . 
         [0039]    In a preferred embodiment of the security measures, the encryption microprocessor  277  is programmed (e.g., in firmware) such that it will encrypt the digital data using a PGP public key which corresponds to a private key held by the decryption server(s). PGP encryption is very secure, and can only be decrypted by a processor which is using the private key which was created as a mate to its corresponding public key. Presumably the entity that creates and distributes the encrypting card readers (e.g., reader  210 ) also controls and/or provides the decrypting servers as a cloud based service. Thus the decrypting service is an extra link inserted into the chain of credit card processing steps. 
         [0040]    Other shapes, sizes, or designs for the card reader devices  210  or  80  are possible and contemplated. 
         [0041]    From all that has been said, it will be clear that there has thus been shown and described herein a card reader device which fulfills the various objects and advantages sought therefore. It will become apparent to those skilled in the art, however, that many changes, modifications, variations, and other uses and applications of the subject card reader device are possible and contemplated. All changes, modifications, variations, and other uses and applications which do not depart from the spirit and scope of the disclosure are deemed to be covered by the disclosure.