Mobile Card Reader for Single-Entry Fund Transfers

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Solution Overview

Problem

Current magnetic stripe card readers are cumbersome and limited to transactions with merchants, lacking the ability to facilitate payments between individuals using a mobile device, requiring repeated entry of financial account information for each transaction.

Innovation Solution

A miniaturized card reader connected to a mobile device that allows for single-entry financial account information, enabling seamless transfers between accounts without re-entry, utilizing a system with a decoding engine, passive ID circuitry, and transaction engine for secure and efficient financial transactions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If magnetic stripe card readers are used for transactions, then financial account verification is achieved, but the device is cumbersome and requires repeated entry of account information

Engineering Contradiction:

Improveease of account information entryVSAvoidcard reader requirement

Core Design Contradiction:

Ease of operationVSDevice complexity

Solution Approach 1:

The patent introduces a mobile device as an intermediary between the magnetic stripe card and the transaction system. The mobile device contains a card reader that reads the magnetic stripe data and transmits it to a remote server for verification, eliminating the need for traditional point-of-sale card readers while enabling peer-to-peer transactions.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The system performs preliminary actions by storing account verification results and transaction histories on the mobile device. When a transaction occurs, the device retrieves previously stored information to facilitate faster processing, reducing the need for repeated account information entry.

Inventive Principle:

Principle #10Preliminary action

2Adaptability or versatility

If traditional card readers are used at merchant locations, then authentication is reliable, but transactions between individuals cannot be facilitated

Engineering Contradiction:

Improvetransaction capability between individualsVSAvoidauthentication reliability

Core Design Contradiction:

Adaptability or versatilityVSReliability

Solution Approach 1:

The mobile device card reader is designed to perform multiple functions: reading magnetic stripe cards, transmitting data to remote servers for verification, and facilitating both merchant and peer-to-peer transactions. This universal device replaces multiple specialized systems while maintaining authentication reliability through server-based verification.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

A remote server acts as an intermediary that receives card data from mobile devices, verifies account information, and returns authentication results. This mediator ensures reliable authentication for all transaction types, whether at merchant locations or between individuals, without requiring physical presence at a traditional card reader.

Inventive Principle:

Principle #24Intermediary (Mediator)

3Productivity

If financial account information is entered for each transaction, then security is maintained, but time efficiency is reduced

Engineering Contradiction:

Improvetransaction speedVSAvoidtime for account information entry

Core Design Contradiction:

ProductivityVSLoss of time

Solution Approach 1:

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The mobile device maintains continuous connection to the remote server, keeping authentication sessions active and account information readily available. This continuous action allows rapid transaction processing without requiring repeated full authentication sequences, thereby improving productivity while maintaining security protocols.

Inventive Principle:

Principle #20Continuity of useful action

Applied Scientific Principles

This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.

Function Achieved in This Case

Enables convenient, secure, and efficient financial transactions between individuals using a mobile device, reducing the need for repeated account information entry and eliminating the need for expensive card readers, while ensuring fraud protection and reliable data transfer.

Implementation Method 1

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.

Methodology Applied

Scientific EffectMagnetic field sensing: Magnetic Field

Data Source

PatentUS9436955B2Methods for transferring funds using a payment service where financial account information is only entered once with a payment service and need not be re-entered for future transfers

Publication Date: 2016.09.06 BLOCK INC

AI summary

A method of transferring funds to and/or from a first party's financial account is provided. A first party's financial account information is entered with a single initial entry to the payment service. Funds are transferred to and/or from the first party's financial account using the payment service. The first party is registered with the payment service, or becomes registered prior to transferring funds to and/or from the financial account using the payment service. For future uses of the first party's financial account to transfer funds to and/or from the first party's financial account, the first party's financial account information need not be entered again with the payment service.