Patent ID: 8573486

Claim:
A system of payment, comprising: a card reader configured to be coupled to and from a mobile device, the card reader including a housing: a read head positioned in the housing, the read head including a slot for swiping of a financial transaction card for reading data stored on a magnetic stripe of the financial transaction card and producing a signal indicative of data stored on the magnetic stripe, an output jack insertable and removable from a microphone port of the mobile device and providing an output jack signal from the card reader, an encryption system configured to provide encrypted information from the card reader to the mobile device, and a monitor system coupled to the encryption system configured to manage card reader behavior between power cycles; and a transaction engine that communicates at least a portion of information from the output jack signal with a third party payment system in communication with a first party's financial account, the third party payment system authorizing a financial transaction and providing a confirmation of payment from the third party payment system using a communication channel of a buyer's choice, the buyer obtaining a receipt for the transaction from the third party payment system.