Method of transmitting information from efficient communication protocol card readers to mobile devices

A method of transmitting information with a communication protocol to a mobile device, comprising:

• reading data on a magnetic stripe of a card using a read head of a card reader, the card reader having a slot for swiping the card, a pathway subsystem, a communication subsystem, a power subsystem, an output jack and device electronics including a microcontroller, code and memory, wherein the code is configured to be executed by the microcontroller and the memory is configured to store the code, the memory also configured to store a unique identifier of the card reader, the output jack being coupled to the pathway subsystem, the communication subsystem, the power subsystem and the read head;
• producing a raw magnetic signal indicative of the data stored on the magnetic stripe;
• converting the raw magnetic head signal into a processed digital signal that the microcontroller can interpret,
• encoding the processed digital signal, by the microcontroller within the card reader, to produce an encoded stream;
• running periodic checksums on the code in the memory, by the microcontroller within the card reader to ensure that the code has not been modified;
• and
• delivering the encoded stream, by the microcontroller within the card reader, as an output jack signal via the output jack of the card reader to the mobile device, the output jack signal including the unique identifier of the card reader.