Patent Publication Number: US-2017351883-A1

Title: Card Reader Device and Method of Use

Description:
CROSS-REFERENCE TO RELATED APPLICATIONS 
     This application is a continuation of U.S. patent application Ser. No. 13/585,979, filed Aug. 15, 2012, which is a Continuation of U.S. patent application Ser. No. 12/932,544, filed Feb. 26, 2011, now U.S. Pat. No. 9,218,517 which is a continuation of U.S. patent application Ser. No. 12/657,792, filed Jan. 27, 2010, now U.S. Pat. No. 7,896,248, which is a continuation-in-part of U.S. patent application Ser. No. 12/456,134, filed on Jun. 10, 2009, now U.S. Pat. No. 7,810,729, with 
     the complete disclosure of each of these applications being hereby incorporated by reference. 
    
    
     TECHNICAL FIELD 
     The present disclosure relates generally to credit card reader devices that are configured to be inserted into a headset jack of a mobile host device, and their use. 
     BACKGROUND 
     This disclosure relates to a card reader device for use with a host device 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 host device for further processing. 
     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. 
     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. 
     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 an approval signal will be sent back to the merchant to complete a transaction. 
     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 or another device which can connect to the Internet. 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 or other device. 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 or other device. 
     Therefore, it would be desirable to have a simple card reader device that would allow an individual to receive or send payments 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 host device with the portable card reader device providing the decoding function for the sensed magnetic stripe information with the host device acting as a point-of-sale device. The host device can have an application programmed therein to receive decoded data from the portable card reader device or to decode data contained on a magnetic stripe to submit the card data to a company or a third party that handles credit authentication requests. 
    
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         FIG. 1  is a side perspective view of a card reader device constructed according to the present disclosure; 
         FIG. 2  is a schematic diagram of a card reader device constructed according to the present disclosure; 
         FIG. 3  is a schematic diagram of another embodiment of a card reader device constructed according to the present disclosure; 
         FIG. 4  is a flowchart of a method of operation of a card reader device constructed according to the present disclosure; 
         FIG. 5  is a perspective view of a card reader device constructed according to the present disclosure; 
         FIG. 6  is a side perspective view of another embodiment of a card reader device constructed according to the present disclosure; 
         FIG. 7  is a schematic diagram of the card reader device shown in  FIG. 6 ; and 
         FIG. 8  is a further detailed schematic diagram of the card reader device shown in  FIG. 6 . 
     
    
    
     DESCRIPTION OF EXAMPLE EMBODIMENTS 
     1. Overview 
     One embodiment includes a card reader device, comprising: a read head configured to generate a signal indicative of data stored on a magnetic stripe of a card when passed by the read head; an output plug, adapted to be inserted into a headset jack of a mobile host device, configured to communicate an output signal indicative of data stored on the magnetic stripe to a microphone input of the headset jack of the mobile host device; and circuitry configured to set the amplitude, which includes attenuation by at least a resistor, of a signal communicating said data included in the signal indicative of data stored on the magnetic stripe generated by the read head resulting in the output 
     signal indicative of data stored on the magnetic stripe. 
     In one embodiment, said circuitry consists of a resistor. In one embodiment, the output signal indicative of data stored on the magnetic stripe is an attenuated version of the signal indicative of data stored on the magnetic stripe generated by the read head. In one embodiment, the read head and the circuitry are contained within a housing, and the output plug extends from the housing. In one embodiment, the signal communicating said data included in the signal indicative of data stored on the magnetic stripe generated by the read head is the signal indicative of data stored on the magnetic stripe generated by the read head. In one embodiment, said circuitry includes decoding circuitry configured to decode the signal indicative of the data stored on the magnetic stripe generated by the read head to determine decoded data; wherein the signal communicating said data included in the signal indicative of data stored on the magnetic stripe generated by the read head is a modulated signal conveying said decoded data. In one embodiment, said decoding circuitry includes an integrated circuit configured to perform decoding operations. 
     One embodiment includes a method, comprising: generating, by a card reader device, a signal indicative of data stored on a magnetic stripe of a card; setting the amplitude, which includes attenuation by at least a resistor, of the signal indicative of data stored on the magnetic stripe resulting in an output signal; and providing the output signal, to a microphone input of a headset jack of a mobile host device, in which an output plug of the card reader device is currently inserted, for processing of a financial transaction related to said data stored on the magnetic stripe. 
     In one embodiment, said generating the signal indicative of data stored on the magnetic stripe is performed by a read head of the card reader device responsive to the magnetic stripe of the card when passed by the read head. In one embodiment, said generating the signal indicative of data stored on the magnetic stripe includes decoding a signal originated by a read head of the card reader device responsive to the magnetic stripe of a card being passed by the read head to determine decoded data, and modulating said decoded data within a signal in producing the signal indicative of data stored on the magnetic stripe. In one embodiment, said decoded data includes an account number associated with the financial transaction. One embodiment includes: receiving the output signal on the microphone input of the headset jack of the mobile host device; and requesting and receiving authorization, by the mobile host device in communication with a host system, for the financial transaction related to said data stored on the magnetic stripe. 
     One embodiment includes a card reader device, comprising: a read head configured to generate a signal indicative of data stored on a magnetic stripe of a card when passed by the read head; an output plug, adapted to be inserted into a headset jack of a mobile host device, configured to communicate an output signal indicative of data stored on the magnetic stripe to a microphone input of the headset jack of the mobile host device; and circuitry configured to receive the signal indicative of data stored on the magnetic stripe from the read head, to decode the signal indicative of the data stored on the magnetic stripe to determine decoded data, and to generate the output signal indicative of data stored on the magnetic stripe; wherein the output signal indicative of data stored on the magnetic stripe is a modulated signal conveying said decoded data. 
     In one embodiment, said circuitry includes an integrated circuit device configured to perform operations in said decoding the signal indicative of the data stored on the magnetic stripe to determine decoded data. One embodiment includes a battery to provide power to the circuitry. One embodiment includes a housing containing the read head and said circuitry, and the output plug extends from the housing. In one embodiment, said circuitry is coupled to the output jack to receive power from one or more audio out channels produced by the mobile host device. In one embodiment, said circuitry includes rectification circuitry for rectifying an audio out waveform received from one or more audio out channels produced by the mobile host device to provide power to the circuitry. 
     One embodiment includes a method, comprising: generating, by a read head of a card reader device responsive to a magnetic stripe of a card being passed by the read head, a signal indicative of data stored on the magnetic stripe; decoding the signal indicative of data stored on the magnetic stripe to produce decoded data; modulating said decoded data in a signal to generate the output signal conveying said decoded data; and providing the output signal to a microphone input of a headset jack of a mobile host device, in which an output plug of the card reader device is currently inserted, for subsequent processing of a financial transaction related to said data stored on the magnetic stripe. 
     One embodiment includes receiving power for operating the card reader device from the mobile host device through the output jack from one or more audio out channels produced by the mobile host device. One embodiment includes receiving power for operating the card reader device from the mobile host device includes rectifying an audio out waveform received from one or more audio out channels produced by the mobile host device through the output jack. In one embodiment, said decoded data includes account information related to the financial transaction. One embodiment includes receiving the output signal on the microphone input of the headset jack of the mobile host device; and requesting and receiving authorization, by the mobile host device in communication with a host system, for the financial transaction related to said data stored on the magnetic stripe. 
     2. Description 
     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, and an output plug adapted to be inserted into a headset jack associated with a host for providing the signal indicative of data stored on a magnetic stripe to a host device, wherein application software resident on the host device directs the processor of the host device to decode the signal provided to the headset jack to produce the digital data stored on the card. 
     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 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 integrated circuit device connected to the signal setting device and the read head for receiving the signal indicative of data stored on a magnetic stripe, and an output plug adapted to be inserted into a headset jack associated with a host for providing the signal indicative of data stored on a magnetic stripe to a host device, wherein application software resident on the host device directs the processor of the host device to decode the signal provided to the headset jack to produce the digital data stored on the card. 
     In yet 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 the 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 integrated circuit device connected to the signal setting device and the read head for receiving the signal indicative of data stored on a magnetic stripe, and an output plug connected to the integrated circuit device adapted to be inserted into an input associated with a host device for providing the signal indicative of data stored on a magnetic stripe to a host device and adapted to receive power from the host device by an audio output associated with the host device. 
     In light of the foregoing comments, it will be recognized that the present disclosure provides a card reader device comprised of a very simple external device to be used in conjunction with a host device having application software provided to perform the decoding function. 
     The present disclosure provides a card reader device that can read and decode data stored on a magnetic stripe card by sensing the recorded data waveform and transmitting the data waveform to a host device where it is decoded with built in circuitry and application software provided in the host device. 
     The present disclosure also provides a card reader device that can read one or more tracks of data stored on a magnetic stripe card. 
     The present disclosure is directed to a card reader device that is of simple construction and design and which can be easily employed with highly reliable results. 
     The present disclosure is related to a card reader device that can be easily carried, transported, or stored. 
     The present disclosure is directed to a card reader device that can read and decode data stored on a magnetic stripe card by sensing the recorded data waveform and transmitting the data waveform to a host device where built in circuitry and application software provided in the host device receives the data waveform and authenticates the card. 
     The present disclosure further provides a card reader device that may be constructed in various shapes, designs, or forms. 
     The present disclosure is directed to a card reader device that incorporates an integrated circuit device that senses and collects a fingerprint associated with the magnetic stripe of the card. 
     The present disclosure also provides a card reader device that can operate with existing magnetic stripe cards without having to retrofit or change existing magnetic stripe cards. 
     The present disclosure is further related to a card reader device that can be powered by a host device through the use of an available headset jack to receive power from one or both of the audio channels. 
     Referring now to the drawings, wherein like numbers refer to like items, number  10  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  10  is shown to comprise a housing  12  having a slot  14  and an output jack  16  extending out from the housing  12 . The jackl  6  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 . It is also possible and contemplated that the jack  16  may be inserted into a socket associated with other devices such as an iPod touch, a personal digital assistant (PDA), or a device that has WiFi (wireless fidelity) connectivity. 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 . 
     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. 
       FIG. 2  illustrates a schematic diagram of the card reader device  10 . The card reader device  10  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 the jack  16 . A lead  28  connects the jack  16  to the coil  24  to complete the circuit. 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  10  is capable of reading one track, usually track two, when the device  10  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 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  10 . 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 . 
     The card reader device  10  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 and this signal is provided to the cell phone  20 . The resistor  26  is required to control the amplitude of the signal because without the resistor  26  the signal being sent to the cell phone  20  may not be within an acceptable amplitude for the hardware associated with the cell phone  20 . If the resistor  26  is missing the signal being sent to the cell phone  20  would be processed incorrectly by 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 such as a third party or a company that handles credit authentication requests. The processor  42  can communicate with the host system 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. The processor  42  may be controlled by a program or an application stored in memory or in a program storage area. The program or application can be programmed to decode digital samples received from the ADC  40  and use the decoded signals to contact a third party for authorizing a transaction. In this manner, a payment from the card holder&#39;s account can be transferred to the cell phone owner&#39;s account or allow the cell phone owner to transfer payment to a merchant that accepts credit card transactions. 
     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 or other device such as an iPod Touch (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. Once processed, the cell phone may contact a third party for processing a transaction in either direction (i.e., to or from the cell phone owner&#39;s account). 
     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 decoded when the card reader device  80  is connected to the stereo line in inputs. 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. 
       FIG. 4  illustrates a flowchart diagram of a method of operation  100  of the card reader device  10 . The method  100  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 . Next, in a step  108 , the set 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 set waveform. The waveform is provided to the analog to digital converter device  40  for conversion to a digital signal in a step  112 . An application or a program in the cell phone  20  decodes the digital signal in a next step  114 . In a next step  116 , the program contacts a third party to authorize a transaction using the decoded signal. The third party either authorizes or denies the transaction in a last step  118 . 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  10 . Further, the card reader devices  10  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. 
     With particular reference now to  FIG. 5 , another embodiment of a card reader device  150  is shown. The card reader device  150  has a housing  152  that is in the shape of an acorn. The device  150  has a slot  154  that runs along a length or a width of the housing  152 . The slot  154  has a depth that is deep enough to allow a magnetic stripe of a card to pass through the slot  154 . The slot  154  has a length that can be less than the length of a card to be read. The device also has a jack  156  extending out of the housing  152 . The device  150  may contain the components shown in either  FIG. 2  or  FIG. 3 . In particular, the device  150  may be easily carried and connected to a cell phone when needed. The device  150  is also small enough that it may be easily stored when not in use. Other shapes, sizes, or designs for the card reader devices  10 ,  80 , or  150  are possible and contemplated. 
     With particular reference now to  FIG. 6 , number  150  identifies another preferred embodiment of a card reader device constructed according to the present disclosure. The card reader device  150  is shown to comprise a housing  152  having a slot  154  and an output jack  156  extending out from the housing  152 . The jack  156  is adapted to be inserted into a socket  158  such as an external microphone input of a host device  160  that can connect to the Internet or can store data and provide data to a device that can connect to the Internet. Some examples of the host device  160  may include an iPod touch, a personal digital assistant (PDA), or a device that has WiFi connectivity. By further way of example, some cell phones have WiFi connectivity but the owner of the phone does not subscribe to a data plan to connect to the Internet so the only way to connect to the Internet is through WiFi. The jack  156  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  156  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  156  may be retractable within the housing  152 . 
     The slot  154  is wide enough and deep enough to accept a card having a magnetic stripe. In particular, the slot  154  is deep enough that the magnetic stripe will fit within the slot  154 . The slot  154  also has a length that is less than the length of the card to be inserted into the slot  154 . However, it is also possible and contemplated that the slot  154  may have other lengths if desired, for a given application. The housing  152  may take on different shapes and sizes, as has been previously discussed herein. 
       FIG. 7  illustrates a schematic diagram of the card reader device  150 . The card reader device  150  comprises a read head  162 , such as an inductive pickup head, having a coil  164  connected to a signal amplitude setting device  166  such as a resistor which is connected to an integrated circuit (IC)  168 . The IC  168  may be, way of example only, a microcontroller such as a Texas Instruments MSP430, a microprocessor, an ASSP (application specific standard products) chip, or an ASIC (application specific integrated circuit) chip, and the IC  168  is connected to the amplitude setting device  166  and connected to the read head  162  (e.g., coil  164 ) via a lead  170 . Although not shown, the IC  168  may be powered by a battery or as will be explained in further detail herein by another connection to the host device  160 . The resistor  166  or other circuitry for setting the amplitude is required to control the amplitude of the signal because without the resistor  166  the signal being sent to the IC  168  may not be within an acceptable amplitude for the IC  168 . It is also possible that the signal amplitude setting device  166  may be incorporated within the IC  168 . The IC  168  is connected to the jack  156  by a lead  172 . A lead  174  connects the IC  168  to the read head  162  (e.g., coil  164 ). A card  176 , such as a credit card, has a magnetic stripe  178  associated with the card  176 . As has been previously discussed, the magnetic stripe  178  may have three tracks with each of the tracks containing data. The card reader device  150  is capable of reading one track of the possible three tracks when the device  150  is connected to the microphone input  158  of the host device  160 . As the magnetic stripe  178  of the card  176  is passed by the read head  162  the read head  162  reads data or information stored in the magnetic stripe  178 . 
     Although not shown, the card  176  is inserted into the slot  154  in the housing  152  and the card  176  is swiped or passed by the read head  162 . Data stored in the magnetic stripe  178  may be in the form of magnetic transitions as described in the ISO 7811 standards. As the card  176  moves past the read head  162 , magnetic transitions representing data induce a voltage in the coil  164 . A voltage signal or waveform produced by the coil  164  is provided to the resistor  166  with the resistor  166  setting the amplitude of the waveform. This waveform is provided to the IC  168  for amplification, signal acquisition, and/or processing. The waveform is provided from the IC  168  to the host device  160  via the jack  156  into the microphone input socket  158 . It is also possible that the IC  168  can decode the waveform and determine the account number of the card  176 . Further, it is known that there exists an intrinsic remnant magnetization pattern in the magnetic stripe  178  that comprises a fingerprint that is unique to the card  176 . If desired the IC  168  can be programmed to sense and collect this fingerprint and send this information to the host device  160  for further authentication of the card  176 . A lead  180  connects the socket  158  to circuitry  182  within the host device  160 . The circuitry  182  may include various devices such as an amplifier, an ADC, an DAC (digital to analog converter), and a microprocessor, all of which are not illustrated in this figure. The circuitry  182  may also include circuitry and/or algorithms to process waveforms provided from the reader  150  so as to verify account information and to complete a transaction, as has been previously discussed. As can be appreciated, there may be other components associated with the host device  160 , as has been discussed in connection with the cell phone  20 . However, such components have not been shown in any detail. 
     The card reader device  150  is capable of being connected to the host device  160  for providing data stored in the magnetic stripe  178  of the card  176 . Once connected any magnetic stripe  178  that is swiped in the slot  154  is read by the read head  162 . The magnetic read head  162  generates an analog waveform that results from changes in magnetization along the stripe  178  relative to the movement between the read head  162  and the stripe  178 . The resistor  166  sets the amplitude of this signal and this signal is provided to the IC  168 . As indicated previously, it is possible that the IC  168  could include or incorporate the amplitude setting device  166 . The IC  168  can process the signal as either a digital signal or an analog signal which is then provided to the host device  160 . The host device  160  can provide information to a host system such as a third party or a company that handles credit authentication requests. The host device  160  can communicate with the host system via WiFi, Bluetooth, or any other mode available to it. The host system may also send a signal, an e-mail, or a message to the host device  160  to indicate that the transaction has been completed. 
       FIG. 8  illustrates the reader  150  being powered by the host device  160 . In particular, the reader  150  has a plug  200  that is adapted to be connected to a headphone jack  202  associated with the host device  160 . The headphone jack  202  has at least one audio output channel and as most commonly found a left audio out channel  204  and a right audio out channel  206 . The audio out channels  204  and  206  are connected to a DAC  208 . The DAC  208  is connected to a microprocessor  210  via a connection  212 . Although one DAC  208  is shown it is possible to have more than one DAC. The headphone jack  202  is connected to an ADC  214  via a microphone input channel  216  and the ADC  214  is connected to the microprocessor  210  by a connection  218 . As has been previously discussed, the plug  200  may be an audio jack, phone plug, jack plug, stereo plug, mini-jack, or mini-stereo audio connector. 
     The plug  200  is connected to the IC  168  via a left channel  220 , a right channel  222 , and a microphone input  224 . The IC  168  is provided power from the host device  160  in the following manner. One of the audio out channels ( 204  or  206 ) can be programmed to output a waveform that is readily rectified and low pass filtered to provide power to the IC  168 . If the audio output of the host device  160  is DC (direct current) coupled, the audio out channel ( 204  or  206 ) can be programmed to a DC level for use as power to the IC  168 . Also, if stereo audio outputs are available the left audio out channel  204  and the right audio out channel  206  can be combined to double the power to the reader device  150 . 
     The IC  168  may have a digital interface to the host device  160  by using the left and right audio out channels  204  and  206  and the microphone input channel  216  of the host device  160 . The host device  160  can provide a data transfer clock and a serial data stream to the IC  168  from the DAC  208  in the host device  160  while receiving synchronous data from the IC  168  via the microphone input  216 . The data transfer clock could be rectified and filtered to provide power to the IC  168  as well. An alternative method of transferring digital data from the IC  168  to the host device  160  is to modulate a carrier waveform with the digital data and deliver the modulated waveform to the microphone input  216  in either a synchronous (using an audio output for synchronization) or asynchronous manner. Examples of modulation formats are OOK, ASK, FSK, PSK, QPSK, MSK, or the like. Demodulation of the serial digital data can be accomplished by the microprocessor  210  in the host device  160  under program control. 
     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 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, which is limited only by the claims which follow.