Secure magnetic stripe reader for handheld computing and method of using same

A secure magnetic stripe card reader module assembly contained within a card reader attachment for electrical connection to and physical attachment to a handheld computing device comprising:

• (a) a magnetic transducer head enclosure;
• (b) a magnetic transducer head for detecting magnetic transitions on a magnetic stripe;
• (c) a transducer head amplifier and a transducer head transitions detector;
• (d) a microcomputer controller containing programs to decode the data from the head transition detector and output said data in one or more formats;
• (e) a software encryption engine;
• (f) whereby said head amplifier and said controller and said software encryption engine are contained within said magnetic head enclosure;
• and
• (g) further whereby said card reader reads magnetic card data and sends said data in an encrypted format to the handheld computing device.

A method for making a secure magnetic stripe card reader module assembly comprising:

• (a) providing a magnetic transducer head enclosure;
• (b) providing a magnetic transducer head for detecting magnetic transitions on a magnetic stripe;
• (c) providing a transducer head amplifier and a transducer head transitions detector into a suitable data format for communication using various industry standard formats including I2C, SPI, USB, Serial TTL;
• (d) providing a controller and controller programs to decode said head transitions;
• (e) providing a software encryption engine;
• (f) encasing said head amplifier, said controller and said software encryption engine within said magnetic head enclosure, whereby said head amplifier and said controller and said software encryption engine are fully contained within said magnetic head enclosure.

A gateway application method using a secure magnetic stripe card reader module, for the purpose of providing end to end strong encryption transparently to legacy networks, comprising the steps:

• (a) providing a communication connection to a fixed or mobile computing device;
• (b) providing a secure magnetic stripe card reader capable of strong encryption connected to fixed or mobile computing device;
• (c) providing a communication connection to a legacy transaction processing server;
• (d) providing a gateway application that accepts encrypted data and command requests from the magnetic stripe card reader and decrypts and reformats said data to the legacy transaction processing sever interface standard before forwarding said reformatted data and command requests to the legacy server using a secure connection;
• and
• (e) providing a gateway that accepts the legacy server's transaction reply and reformats it to a format compatible with the originating POS, thereby providing end to end strong encryption of data to legacy networks.