PH12013000006A1 - Mobile device attachment (pos device) for credit/debit card payment processing - Google Patents

Abstract

The present invention relates to the use of the actual unit of portable magnetic swipe device attached to the phone where processing the phone where processing of payments is allowed through recognition of the magnetic strip at the back of the card and information are validated through encyrption and decryption of user information which is the Personal Identification Number in particular. It is specific to the processing of Personal Identification Number transmission to and from the issuing bank without comprising the security and integrity of the bank network and customer information.

Description

. ’ " 1 _ Co : MOBILE DEVICE ATTACHMENT FOR SWIPE AND PIN CREDIT CARD/DEBIT

CARD PAYMENT PROCESSING

Field of Invention

The present invention relates to merchant’s payment pfocessing of debit and credit card using swiping the magnetic strip to any mobile unit through attachment of a device which will collect and transmit data that is limited to the card number and the name of the cardholder. The information is sent to the issuing bank to validate the balance, card number and name of cardholder. A host server sends the transaction details through special SMS assigned number directly to the mobile number of the cardholder which will ask for the cardholder’s personal identification number (PIN); the cardholder replies to the special SMS number by sending the

PIN; the PIN is sent to the issuing bank which will confirm, approved or reject the transaction; the merchant will receive confirmation of the transaction with approval or decline; the cardholder receives the status of the transaction.

Background of the Invention

The mobile device attachment for payment processing of debit and credit card without a chip and securing that the Personal Identification Number is currently not available right now. The mobile device attachment can be used only if a method exists to secure information of the cardholder which will not comprised.

The current Point of Sale (POS) Terminal costs more than one hundred euro (100 euro) to either the merchant acquirer or to the merchant. The current invention is a small device attached to a mobile phone which will not cost more than fifty euro (50 Euro); this will be beneficial to the small and medium enterprises; the existing method using the device attachment is currently limited to swipe and signature verification process. Signature verification is subject to forgery unlike personal identification number (PIN) verification. The Swipe and PIN verification without a keypad to enter the PIN number to the device is what the invention will resolve to address. 3 oo .

Statement of Invention

The device attachment is a small piece of equipment that has an ear jack where it can be connected to a mobile phone such as Android phone, IPhone and Blackberry. An application is used to start transaction process. The merchant swipes the card at present to the device. The device will capture the name and the card number. The cardholder needs to enter the mobile number to the merchant’s phone with the device attached. The information is sent to the issuing bank; the bank validates balance, the card number and the name of the card holder to a third party server to proceed with the process; the third party server sends an special messaging service (SMS) to the cardholder through providing details of the transaction and asking for a

Personal Identification Number. The card holder sends the PIN through replying to the SMS.

The SMS sends information directly to the issuing bank; if the PIN is correct, the issuing bank sends an approval message to the third party server; the third party server sends the merchant an approval message; if the PIN is incorrect, the bank will send a decline message of transaction; third party will send information to the merchant on the status of the transaction; a cardholder is allowed to make three attempts; if the card holder attempts three times and failed, the PIN will be locked; unlocking the PIN will be through calling the issuing bank directly.

Advantages include the following: 1. The cost of the mobile device unit is cheaper than the regular Point of Sale (POS) terminal; 2. Cottage industry businesses, small enterprise with one or two employees; freelance self employed individuals can accept card payments using this method; 3. The Personal Identification Number (PIN) of the cardholder is not compromised because the PIN will not be encoded to the merchant’s phone; ! 4. Signature is not required and identity theft using forging of signature is avoided, 5. The card holder is informed of the card being used.

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Brief description of the drawings:

To illustrate the invention and make it clearly understood from the following embodiment:

Figure 1 shows the physical device that is attached to the mobile unit;

Figure 2 shows the technical diagram and network of the invention;

Figure 3 shows the screen shots and process of mobile payment processing system using swipe and PIN.

Figure 3A - shows the initial screen shot of the Merchant. : Figure 3B — shows the second screen shot of the Merchant upon successful log in.

Figure 3C — shows the screen shot of the Customer or Cardholder with the PIN request.

Figure 3D — shows the screen shot reflected on the Merchants phone once the transaction is successful.

Figure 3E — shows the screen shot of the Customer or Card holder with the authorized transaction.

Detailed description of the drawings:

Figure 1 — Magnetic swipe device that will be attached to the mobile phone; it is a detachable device that can easily be attached to an Android Phone, IPhone, Blackberry phones or Tablets.

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Figure 2 — Illustrates how the method will work in processing payments using swipe and PIN of debit and credit card without the cardholder encoding the PIN to the merchant's phone unit.

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Bank Network Firewall | Lo = _ Database | ]

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In Figure 2, the process is labelled from (1) to (21) where the line color has been clearly highlighted to gray, and black to easily illustrate the flow of the transaction using the attached ; mobile device. Refer to detailed explanation below: i

Item (1) in the illustration shows that the customer presents the debit/credit card to the merchant;

Item (2), the merchant uses his mobile phone to attach the device to swipe the debit/credit card ] and uses the merchant acquirer application software on the phone; merchant enters the amount 1 that the customer is purchasing and the phone number of the customer.

Item (3), the customer or cardholder information is transmitted through the merchant’s telecom/internet service provider;

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Item (4) , illustrates that through ‘http’ the information is transmitted using SSL encryption to ensure security of the card information to the Merchant Acquirer;

Item (5), the Merchant Acquirer checks and validates information of the name and the sixteen digit card number through its database;

Item (6), if the name and card number is not in the database of the Merchant Acquirer, the

Merchant Acquirer sends information to the Bank Network and checks the information;

Item (7), Bank Network transmit response to the Merchant Acquirer and stores the card number, name and phone number; ]

Item (8), the information is sent to the Bulk SMS provider to send a request to the customer for the personal identification number using a pre defined SMS short code number;

Item (9), the information is sent through http using XML tag which is then transmitted to the telecom service provider to reach the cardholder;

Item (10), the Bulk SMS process request and transmit the special coded message to the telecom service provider;

Item (11), the card holder receives request from a pre defined short code number message from the telecom service provider;

Item (12), the card holder sends Personal Identification Number using a special coded message or SMS;

Item (13), the message is transmitted either through Wireless Application Protocol (WAP) if the cardholder is not using a smart phone or through http if the cardholder is using a smart phone;

Item (14), the telecom carrier sends the encrypted information to the Bulk SMS provider;

Item (15), The Bulk SMS provider receives the information and decrypts the message to XML tag to send to the Merchant Acquirer;

Item (16), the XML tag sent to the Merchant Acquirer through http;

Item (17), the Merchant Acquirer receives the XML tag with the PIN;

Item (18), the Merchant Acquirer matches the card number and name with the PIN to validate with the Bank Network;

Claims (4)

x, Claims En

1. The inventive process of verifying transaction and Personal Identification of a 5 Debit/Credit Card to the Bank Network through transmission of information from the & mobile POS device attachment to a mobile phone; SV Co a

2. The magnetic swipe device attachment to the mobile phone where the progessing of os payment uses an application to send and receive information by separaiphf requesting for the Personal Identification Number of the card holder from the custopfier or card holder’s i. phone; So

3. The method of using the device for debit and credit cards independently from the Point Le of Sale Terminal using cards with chip; Ea

4. The method of processing Personal Identification Number validation directly through the - customer’s mobile phone through the mobile banking network system where the PIN is encrypted and decrypted using the Secure Socket Layer (SSL) link from the Bulk SMS provider to the bank and the bank to the bulk SMS provider;