Card reader device for a cell phone and method of use

A card reader device for securely reading a card having data stored on a magnetic stripe incorporated into the card the device comprising:

• 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;
• an amplifier for amplifying the signal indicative of data stored on a magnetic stripe;
• an encryption microprocessor for encrypting the signal;
• and
• an output jack adapted to be inserted into a microphone input associated with a cell phone for providing the encrypted signal indicative of data stored on a magnetic stripe to a cell phone.

A method for securely reading a card having data stored on a magnetic stripe incorporated into the card, the method comprising the steps of:

• providing a card reader device comprising a read head for producing a signal indicative of data stored on a magnetic stripe, an encryption microprocessor, and an output adapted for electrically connecting to a cell phone input;
• providing a cell phone comprising circuitry for processing a signal indicative of data;
• electrically connecting the card reader output to the cell phone input;
• passing a magnetic stripe of a card by the read head to read data stored on the magnetic stripe and to produce a signal indicative of the data;
• using the encryption microprocessor to encrypt the data indicated by the signal;
• providing a signal indicative of the encrypted data to the cell phone for processing to extract the encrypted data, being an encrypted form of the data read from the magnetic stripe.