PCT/IB2010/001367
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`TITLE OF THE INVENTION
`
`APPARATUS AND METHOD FOR COMMERCIAL TRANSACTIONS
`
`USING A COMMUNICATION DEVICE
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`FIELD OF THE INVENTION
`
`[0001]
`
`The present invention relates to an apparatus and a method for
`
`commercial transactions using a communication device. More particularly, but not
`
`exclusively, the present invention relates to an apparatus and a method oftransactions
`
`via a wireless or a landline communication device using a transaction card.
`
`BACKGROUNDOF THE INVENTION
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`10
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`Electronic fund transfer over mobile phones is growing popular. Many
`[0002]
`systems include combining a point of sale (POS) device with a wireless communication
`
`device such as a cell phone.
`
`[0003]
`
`These POS devices include a processor as well as an input device to
`
`receive and process information from a transaction card such as a debit card, a credif
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`15
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`card, a cash card, a stored value card, an ATM card or combinations thereof and the
`
`like. The input device may include a bar code reader, a magnetic stripe reader, an
`
`integrated circuit reader, a smartcard reader, a fingerprint scanner, an optical scanner, a
`
`signature pad, an alphanumeric keypad (including a PIN pad), a proximity detector, an
`
`audio recording device, a camera or combinations thereof and the like. The processor
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`20
`
`of the POS device receives information from the transaction card and sendsit to a
`
`remote computer via a communication network. This information can be transmitted by
`
`the processor via the wireless communication device. The wireless communication
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`device includes a transceiver, a communication port or any other type of similar
`
`communication device capable of transmitting information received by the portable
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`25
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`transaction device processor from the transaction card to the remote computer. The
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`communication fink between the remote computer and the wireless communication
`
`device can be provided by the processor of the wireless communication device. The
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`portable transaction device can also include a Global Positioning System (GPS) locator
`chipset so the location of the POS can be tracked by the remote computer. The remote
`
`computer sends the information it has received to the processor of the institution that
`has issued the transaction card that is being used. The processorof this institution
`validates the requested transaction and sends this information to the processor of the
`
`portable transaction device via the remote computer and the wireless communication
`
`device which are linked to each other by way of the aforementioned communication
`network.
`
`(0004)
`
`Known
`
`systems which
`
`combine POS devices with wireless
`
`10
`
`communication devices present certain drawbacks such as the inconvenient length of
`time to receive information regarding whether or not a given transaction has been
`accepted or refused. Other systems currently available include PayPal mobile, Obopay,
`Swipepay mobile. These solutions use either SMS or FPRS as the means of
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`communication. However,
`
`these communication methods often suffer
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`from an
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`15
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`unbounded delay or become unavailable in locations where these services are not
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`20
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`25
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`provided. Another drawback of existing systems is that they require registration and
`installation of software which are usually inconvenient for users to install. More
`importantly, these systems do not work for all mobile phones given the many different
`combinations of hardware and software platforms. Moreover, these solutions are not
`
`secure. They are prone to spyware or keylogger. Hence they are not compliant with
`paymentcard industry standards such as PC1 PED.
`
`OBJECTS OF THE INVENTION
`
`An object of the present invention is to provide an apparatus for
`[0005]
`commercial transactions using a transaction card via a communication device in audio
`communication with a remote processor assembly.
`
`{0006}
`
`An object of the present
`
`invention is to provide a system for
`
`commercial transactions using a transaction card via a communication device method
`for commercialtransactions using a communication device.
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`[0007]
`
`An object of the present
`
`invention is
`
`to provide a method for
`
`commercial transactions using a transaction card via a communication device
`
`[0008} .
`
`An object of the present invention is to provide an apparatus for
`
`wireless transactions.
`
`{0009}
`transactions.
`
`An object of the present invention is to provide a method for wireless
`
`SUMMARYOF THE INVENTION
`
`{0010}
`
`In accordance with an aspect of the present
`
`invention,
`
`there is
`
`provided
`
`an apparatus for commercial transactions using a transaction card via a
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`10
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`communication device in audio communication with a remote processor assembly, the
`
`apparatus comprising:
`
`{0011}
`
`an input device for capturing information from the transaction card;
`
`f0012}
`signal; and
`
`a controller for converting the captured card information into an audio
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`15
`
`[0013]
`
`a communication link for being connected to the communication
`
`device for the transmission of audio signals therebetween;
`
`[0014]
`
`wherein when the input device captures the card information, the
`
`controller converts the card information into an audio signal that is transmitted via the
`
`communication link to the communication device for transmission thereof to the remote
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`20
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`processor assembly for conversion of the audio signal
`validation of the card information.
`
`into a digital signal and for
`
`[0015]
`
`in an embodiment,
`
`the input device is further adapted to receive
`
`additional transactional information directly from a user; the controller is adapted to
`
`convert said additional information into an audio signal.
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`25
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`{0016]
`
`In an embodiment,
`
`the remote processor assembly converts and
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`transmits the card validation information as an audio signal to the communication device
`
`which transmits this audio signal
`
`to the controller via the communication link, the
`
`controller being further adapted to convert this audio signal into a digital signal.
`
`[0017]
`
`In an embodiment, the apparatus further comprises an output device
`
`for communicating the digital signal regarding the card validation information to the user.
`
`{00138]
`
`In accordance with an aspect of the present
`
`invention,
`
`there is
`
`provided
`
`a system for commercial
`
`transactions using a transaction card via a
`
`communication device, the system comprising:
`
`[0019]
`
`a transaction apparatus adapted to capture information from the
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`10
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`transaction card and to convert the captured card information into an audio signal, the
`
`transaction apparatus being linked to the communication device for the transmission of
`
`audio signals therebetween; and
`
`[0020]
`
`a transaction server adapted to convert an audio signal into a digital
`
`signal,
`
`the transaction server being linked to the communication device for
`
`the
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`15
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`transmission of audio signals therebetween and to a remote processor/issuer adapted to
`
`validate the transaction card information for
`
`the transmission of digital signals
`
`therebetween,
`
`[0021]
`
`wherein when the transaction apparatus captures the card information
`
`it is converted into an audio signal and transmitted to the communication device for
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`20
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`transmission to the transaction server to be converted to a digital signal and transmitted
`
`to the remote processor/issuerfor validation.
`
`{0022}
`
`In an embodiment, the transaction serveris further adapted to convert
`
`a digital signal into an audio signal, wherein when the transaction server receives the
`
`digital signal of the validation information from the remote processor/issuer it
`
`is
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`25
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`converted to an audio signal and sent to the communication device which transmits this
`
`audio signai to said transaction apparatus.
`
`[0023]
`
`in an embodiment, the transaction apparatus is further adapted to
`
`convert an audio signal into a digital signal, wherein when the transaction apparatus
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`receives the audio signal of the validation information form the communication device it
`
`is converted to digital signal.
`
`ln an embodiment, the transaction apparatus comprises an output
`[0024]
`device for communicatingthe digital signal regarding the card validation information to a
`user.
`
`[0025]
`in an embodiment, the transaction apparatus is adapted to receive
`additional transactional information directly from a user and to convert this additional
`information into an audio signal.
`
`10
`
`there is
`invention,
`In accordance with an aspect of the present
`[0026]
`provided a method for commercial
`transactions using a transaction card via a
`communication device, the method comprising:
`.
`
`[0027]
`
`[0028]
`
`[0029]
`
`capturing information from a transaction card;
`
`converting the captured information to an audio signal;
`
`transmitting the audio signal to a communication device ;
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`15
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`[0030]
`
`transmitting the audio signal from the communication device to a
`
`server adapted to convert audio signals;
`
`[0031]
`
`[0032]
`
`information; and
`
`converting the audio signal to a digital signal;
`
`transmitting the audio signal
`
`to a processor for validating card
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`20
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`[0033]
`
`validating the digital signal of the card information.
`
`[0034]
`
`[0035]
`
`in an embodiment, the method further comprises:
`
`transmitting the digital signal of the validation information to a server
`
`adapted to convert digital signals;
`
`[0036]
`
`converting the digital signal of the validation information to an audio
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`signal;
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`6
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`transmitting the audio signal of the validation information to the
`[0037]
`communication device.
`
`[0038]
`
`In an embodiment, the method further comprises:
`
`transmitting the audio signal of the validation information from the
`[0039]
`communication device to a controller adapted to convert audio signals;
`
`[0040]
`
`[0041]
`
`converting the audio signal to a digital signal, and
`
`communicating the validation information via a userinterface.
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`10
`
`there is
`invention,
`In accordance with an aspect of the present
`[0042]
`provided an apparatus for commercial transactions using a transaction card via audio
`communication with a remote processor assembly, the apparatus comprising:
`
`[0043]
`
`[0044]
`
`an input device for capturing information from the transaction card;
`
`a controller linked to said input device for converting the captured
`
`card information into an audio signal; and
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`15
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`audio
`in
`controller
`the
`to
`linked
`device
`communication
`a
`[0045]
`communication with the remote processor assembly for the transmission of audio signals
`
`therebetween;
`
`wherein when the input device captures the card information, the
`[0046]
`controller converts the card information into an audio signal that is transmitted via the
`communication device to the remote processor assembly for conversion of the audio
`
`signalinto a digital signal and for validation of the card information.
`
`in an embodiment, the input device and controller device are provided
`[0047]
`in a single unit that is selectively linked to the communication device. In an embodiment,
`the controller and the communication device are provided in a single unit
`that
`is
`selectively linked to the input device.
`In an embodiment, the controller is adapted to
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`20
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`convert an audio signal into a digital signal.
`
`[0048]
`
`In accordance with an aspect of the present
`
`invention,
`
`there is
`
`provided a system for commercial transactions using a transaction card comprising:
`
`[0049]
`
`a transaction and communication assembly comprising an input
`
`device for capturing information from thetransaction card, a controller linked to the input
`
`device for converting the captured card information into an audio signal, and a
`
`communication device linked to the controller;
`
`[0050]
`
`a transaction server adapted to convert an audio signal into a digital
`
`Signal,
`
`the transaction server being linked to the communication device for
`
`the
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`10
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`transmission of audio signals therebetween and to a remote processor/issuer, adapted
`
`to validate the transaction card information, for the transmission of digital signals
`
`therebetween,
`
`[0051]
`
`wherein when the input device captures the card information it
`
`is
`
`converted by the controller into an audio signal and transmitted via the communication
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`15
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`device for transmission to the transaction server to be converted to a digital signal and
`
`transmitted to the remote processor/issuerfor validation.
`
`[0052]
`
`In an embodiment, the controller is adapted to convert an audio signal
`
`into a digital signal.
`In an embodiment, the transaction server is adapted to convert a
`digital signal into an audio signa!for transmission to said communication device.
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`20
`
`[0053]
`
`In accordance with an aspect of the present
`
`invention,
`
`there is
`
`provided a system for commercial transactions using a transaction card comprising:
`
`[0054]
`
`[0055]
`
`an input device for capturing information from the transaction card;
`
`a controllerlinked to the input device for converting the captured card
`
`information into an audio signal;
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`25
`
`[0056]
`
`an interface display linked to the controller;
`
`[0057]
`
`a communication device linked to the controller;
`
`
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`a transaction server adapted to convert an audio signal into a digital
`[0058]
`the transaction server being linked to the communication device for
`the
`signal,
`transmission of audio signals therebetween and to a remote processor/issuer, adapted
`
`to validate the transaction card information,
`
`for the transmission of digital signals
`
`therebetween; and
`
`[0059]
`
`a merchant serverlinked to the transaction server and providing a
`
`remote merchantinterface to be accessed by a user for making a transaction,
`
`[0060]
`
`wherein when a transaction is requested via the merchant interface,
`
`the merchant server receives this requests and sendsit to the transaction server which
`
`converts it to an audio signal for transmission to the controller via the communication
`device, the controller converts the audio signal into an appropriate format for being
`displayed to the uservia said interface display, wherein when the input device captures
`the card informationit is converted by said controller into an audio signal and transmitted
`
`via the communication device for transmission to the transaction server to be converted
`to a digital signal and transmitted to the remote processor/issuer for validation of the
`transaction request.
`
`Other objects, advantages and features of the present invention will
`[0061}
`become more apparent upon reading of the following non-restrictive description of non-
`limiting illustrative embodiments thereof, given by way of example only with reference to
`the accompanying drawings.
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`10
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`15
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`20
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`BRIEF DESCRIPTION OF THE DRAWINGS
`
`In the appended drawings, where like reference numerals denote like
`[0062]
`elements throughout and in where:
`
`[0063]
`
`Figure 1
`
`is a flow diagram showing a transaction network in
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`25
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`accordance with an non-restrictive illustrative embodiment of the present invention
`
`including a transaction/communication assembly and a remote processor assembly;
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`Figure 2 is a front view of a transaction/communication assembly in
`[0064]
`accordance with an non-restrictiveillustrative embodimentof the present invention;
`
`Figure 3 is a bottom perspective view of the transaction apparatus of
`[0065]
`the transaction/communication assembly of Figure 2;
`
`the
`the transaction apparatus of
`Figure 4 is a front view of
`(o066]
`transaction/communication assembly of Figure 2, shown here capturing information from
`
`a transaction card;
`
`[0067]
`
`Figure 5 is a flow diagram of the control system of a transaction
`
`apparatus in accordance with an non-restrictive illustrative embodiment of the present
`
`10
`
`invention;
`
`[0068]
`
`Figure 6 is a flow diagram showing a transaction network in
`
`accordance with another non-restrictiveillustrative embodiment of the present invention
`including a transaction/communication assembly,
`a remote processor assembly a
`merchant server and an associated remote interface;
`.
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`15
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`[0069]
`
`Figure 7 is a front view of a transaction/communication assembly in
`
`accordancewith another non-restrictive illustrative embodiment of the present invention;
`and
`,
`
`Figure 8 is flow diagram of the control system of the communication
`[0070]
`device of the transaction/communication assembly of Figure 7.
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`20
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`DETAILED DESCRIPTION OF ILLUSTRATIVE EMBODIMENTS
`
`[0071]
`
`Generally stated and in accordance with an embodiment of the
`
`invention, there is provided an apparatus, a system and a method for transactions via
`
`transaction cards using a communication device. The communication device includes a
`
`wireless communication device, a mobile phone, a cellular phone, a landline phone, a
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`25
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`personaldigital assistant (PDA), a pager computer, a Smart Phone™, a Blackberry™,
`
`an iPhone™, a netbook and the like.
`
`The transaction card includes a payment card
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`debit card, credit card, cash card, stored value card, ATM card and other electronic
`methods of payment as will be understood within the art.
`In an embodiment, the
`apparatus, system and method disclosed herein are related to e-commerce or m-
`
`commerce such as mobile payment and person-to-person money transfer.
`
`[tn an
`
`embodiment, the apparatus, system and method integrate mobile and internet payment.
`
`A variety of online transactions can be used within the context of the present invention.
`
`[0072]
`
`In an embodiment, a transaction apparatus such as a portable point of
`
`sale (POS) device for example is linked to the communication device thereby providing a
`
`transaction device assembly. The transaction apparatus includes an input device to
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`10
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`capture information from the transaction card, a controller to process this information.In
`
`an embodiment, the transaction apparatus includes an output for providing feedback to
`the user.
`
`[0073]
`
`In an embodiment, the input device includes a bar code reader, a
`
`magnetic stripe reader, an integrated circuit reader, a smartcard reader, a fingerprint
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`15
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`scanner, an optical scanner, a signature pad, an alphanumeric keypad (including a PIN
`
`pad), a proximity detector, an audio recording device, a camera or combinations thereof
`
`andthe like. The input device is used to capture information including and notlimited to
`
`card data (e.g. track data, ICC data) from the transaction card and othertransaction data
`(transaction type/transaction amount) or
`identification data such as a Personal
`Identification Number (PIN), a Card Verification Code (CVC)) from the user.
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`20
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`[0074]
`
`The captured information is processed and converted by the controller
`
`to an audio format that can be suitable for transmission over an analog voice channelfor
`
`example. The controller includes a secure microprocessor unit (MPU) or microcontroller
`
`unit (MCU).
`
`25
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`{0075}
`
`in an embodiment, the output device includes a user interface such as
`
`a display screen for example an LCD (Liquid Crystal Display) or LED (Light emitting
`
`diode) screen, a buzzer, a speaker and other mechanisms.
`
`{0076}
`Transaction data communication between the transaction apparatus
`and the communication device can be conductedby using any analog channel such as a
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`hands-free interface, Blue tooth, or other communication link such as USB, Wifi and
`
`other technologies.
`
`For example,
`
`the processed card data information can be
`
`transmitted to the communication device via the analog hands-free jack in a mobile
`
`phone. Communication via this analog channel can be one-way or two-way depending
`
`on the implementation and usage.
`
`[0077]
`
`The communication device receives the information and sendsit to a
`
`remote transaction processing server computer via a communication network. This
`
`information can be transmitted via the communication device which includes a
`
`transceiver, a communication port or any other type of similar communication device
`
`10
`
`The
`capable of transmitting information captured by the transaction apparatus.
`transaction processing server computer sends the information it has received to a
`remote processoroftheinstitution that has issued the transaction card that is being used
`
`(the remote processor/issuer). The remote processor/issuer validates the requested
`
`transaction and either approves or rejects the transaction. The transaction result is then
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`15
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`returned to the transaction processing server computer whichin turn returns the result to
`
`the communication device. Optionally, the communication device may send the result to
`
`the transaction apparatus. Depending on the implementation and usage, the transaction
`
`result can be displayed on both or either one of the communication device or the
`transaction device.
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`20
`
`[0078]
`
`With reference to the appended drawings,illustrative embodiments of
`
`the present invention will be described herein so as exemplify the invention and by no
`
`meanslimit the scope thereof.
`
`[0079]
`
`Figure 1 shows a transaction network 10 including a transaction
`
`apparatus 12 and communication device 14 which together form a transaction and
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`25
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`communication assembly 16. The transaction apparatus 12 captures transaction data
`
`and,
`in some implementations, provides a user with feedback. Also shown is a
`transaction server 18 and a transaction processor/issuer 20 which together form a
`remote processor assembly 22. A request for a transaction occurs at the transaction
`
`apparatus 12 via a transaction card 24 (see Figure 4). The transaction apparatus 12
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`30
`
`captures information from the transaction card and converts this information into an
`
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`12
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`is transmitted to the communication device 1 4 for
`audio signal. The audio signal
`transmission to the transaction server 18 via a communication network 26 (e.g. Internet,
`GSM/GPRSnetwork). At the transaction server 18, the audio signal is converted into a
`digital signal and transmitted to the remote processor/issuer 20 via a communication or
`
`payment network 28 (e.g. Internet, VisaNet, BankNet). The remote processor/issuer 20
`
`validates this request by accepting or denying the request and sends this validation
`information to the transaction server 18 which then converts this digital signal into an
`audio signal and transmits it back to the assembly 16 providing the seller and buyer with
`a confirmation or a rejection message. As such, the communication device 12 acts as a
`
`10
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`receiver of the transaction data in analog audio format and also as a conduit to transmit
`
`the transaction data to a transaction server 18 via the communication network 26.
`
`With reference to Figures 2, 3 and 4, an example of a transaction and
`[0080]
`communication assembly 16 is shown including a portable transaction apparatus 12 in
`the form of a point of sale (POS) device linked to a communication device in the form of
`
`15
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`mobile phone 14 via a communication link in the form of a cable 30. The cable 30
`
`includes a pair of opposite connector ends 32 for being mounted to the phone jack 33
`(see Figure 3) of the POS device 12 and the jack 34 of the mobile phone 20.
`
`The POS device 12 includes an output device such as a user
`[0081]
`interface in the form of a display screen 36 which can be an LCD screen for example.
`The display screen 36 displays transaction information and instructions as well as
`
`20
`
`providing other feedback to the user. The POS device 12 also includes an input device
`38 such as card reader slot 39 for swiping or inserting the transaction card 24 and
`capturing information therefrom. The POS device 12 can also include an additional input
`device 40 in the form of a control pad including a PIN pad 42, and other control buttons
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`25
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`44 allowing the user to enter transaction information which is also captured by the POS
`
`device 12 and converted into an audio signal for transmission to the communication
`device 14.
`
`[0082]
`IC chip 48.
`
`The transaction card 24 includes a magnetic stripe 46 as well as an
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`13
`
`[0083]
`
`With reference to Figure 5,
`
`the transaction device 12 includes a
`
`controller 50 in the form of a microcontroller unit (MCU). The input device 38 can bein
`
`the form of an analog signal reader 52 such as a magnetic stripe reader and/or a digital
`
`signal reader 54 such as an Integrated Circuit (IC) or Smart Card or EMV reader.
`
`In an
`
`embodiment, the transaction apparatus 12 is powered by a power source 56 optionally
`
`includes a printer 58 such as a thermal printer for example. As mentioned above,in an
`
`embodiment, the input system of the transaction apparatus 12 includes the input device
`
`38 as well as an additional input device in the form of a control pad 40.
`
`[0084]
`
`With reference to Figures 1
`
`to 5,
`
`the general operation of the
`
`10
`
`invention will now be described in accordance with a non-limiting illustrative embodiment
`thereof.
`
`[0085]
`In order to execute a commercial transaction, the user swipes the
`card 24 through theslot 39; the analog information on the magnetic stripe 46 is captured
`by the magnetic stripe reader 52 and transferred to the MCU 50.
`In another
`
`15
`
`embodiment, the digital information from the IC chip 48 is captured by the digital signal
`
`reader 54 and is transferred to the MCU 50. Optionally, a PIN number may also be
`
`required to be entered via the PIN pad 42 and the data is encrypted by the MCU 50.
`
`{0086]
`
`The transaction data whetheroriginally received in analog formator in
`
`encrypted digital format is converted by the MCU 50 into an analog audio signal suitable
`
`20
`
`for transmission over the analog communication link between the transaction device and
`
`the communication device. In this example, this audio signal is then transmitted to the
`
`mobile phonevia cable 30.
`
`[0087]
`
`Transaction data is then transmitted to the transaction server 18 for
`
`processing. The transaction server 18 decrypts the signal and convertsit into a digital
`
`25
`
`signal. This data is then transmitted to the processor/issuer 20 for validation. The
`
`processor/issuer 20 receives the transaction data and then validates the information in
`
`order to accept or reject the requested transaction. Once the transaction has been
`
`accepted or rejected,
`
`the processor/issuer 20 produces a message confirming the
`
`Square Exhibit 1006
`Page 13 of 34
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`Square Exhibit 1006
`Page 13 of 34
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`

`PCT/HB2010/001367
`
`14
`
`foregoing and transmits this information back to the transaction server 18 in digital
`format.
`
`The transaction server 18, having received the message from the
`[0088]
`processor/issuer 20, converts it into an audio signal and transmits this information via
`the communication network 26 back to the mobile phone 14.
`
`The mobile phone 14 transmits the message back to the portable
`[oos9]
`transaction device 18 via cable 30. The MCU 50 decodes the analog audio signal and
`converts it back into appropriate data format for processing and display via screen 36.
`
`In another embodiment, the binary digital signal, whether originally
`[0090]
`received in analog format orin encrypted digital format is compressed by the MCU 50
`and converted into a hexadecimal signal. This hexadecimal signal
`is then further
`compressed by the MCU 50 and converted into a dual-tone multi-frequency (DTMF)
`audio signal. This DTMF signalis then transferred by the MCU 50 to the mobile phone
`14 and transmitted to the transaction server 18.
`
`The transaction server 18 decompresses the DTMF signal and
`[0091]
`into a hexadecimal
`signal.
`This hexadecimal
`signal
`is
`then further
`converts
`decompressed by the transaction server 18 and converted into a binary digital signal.
`The transaction server 18 then transmits this binary digital signal
`to the remote
`processor/issuer 20. The remote processor/issuer 20 receives the binary digital signal
`and then validates the information in order to accept or reject the requested transaction.
`Once the transaction has been accepted orrejected, the processor/issuer 20 produces a
`binary digital signal confirming the foregoing and transmits this information to the
`transaction server 18. The binary digital signal is compressed into a hexadecimal signal
`and then recompressed into a DTMF audio signal whichis then transmitted to the mobile
`phone 14. The mobile phone 14 then transmits this DTMF audio signal to the MCU 50
`which decompresses the DTMF audio signal and converts it into a hexadecimalsignal.
`Finally this hexadecimal signal
`is then further decompressed and converted into an
`appropriate data formatto be displayed via screen 36.
`
`(0092]
`
`Therefore,
`
`in an embodiment, there is provided a payment system
`
`10
`
`15
`
`20
`
`25
`
`Square Exhibit 1006
`Page 14 of 34
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`Square Exhibit 1006
`Page 14 of 34
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`PCT/HB2010/001367
`
`15
`
`consisting of a transaction apparatus 12 and a transaction server 18. The transaction
`apparatus 12 allows for card data and PIN capture via the input device 38 and the
`control pad 40. The controller 50 controls the operation flow of the transaction
`apparatus;
`it provides the encryption required for
`transaction and other channel
`encryptions as well as memory.
`Audio communication between the transaction
`apparatus 12 and the transaction server 18 is provided by the communication device 14.
`Operation of the transaction apparatus is displayed on the userinterface (the display
`screen) 36. The transaction server 18 is used to decrypt
`the data sent by the
`communication device 14 where the data is translated and forwarded to the payment
`
`10
`
`network 28including a processor/issuer 20 for further processing.
`
`18
`
`20
`
`25
`
`For example,in transactions such as in taxi or limousine services, the
`[0093]
`driver swipes the credit card 24 of the passenger in the magnetic stripe reader 52 of the
`POSdevice 12 which converts this analog data into an audio signal and is connected to
`the driver's mobile phone 14 via the hands-free jack 34 for transmitting this data. The
`mobile phone 14 sends the audio signal to the remote transaction server computer 18
`via the communication network 26 between the transaction server computer 18 and the
`mobile phone 14. The transaction server computer 18 communicates with the remote
`processor/issuer 20 ofthe financialinstitution that issued the passenger's credit card 24
`and validates the requested transaction by accepting or refusing it. The foregoing
`information is then sent back to the transaction server computer 18 which converts it to
`an audio signalthat is sent to the POS device 12 via the mobile phone 14. The display
`screen 36 informs the driver and the passengerif the transaction was acceptedornot.
`
`In another example, the apparatus, system and method provide for
`[0094]
`online purchasing or moneytransferring. Hence, the transaction apparatus 12 is used
`for online purchase or moneytransfer.
`
`Figure 6 shows a transaction network 11 similar to the transaction
`[0095]
`network 10 but including a merchant server 60 in communication via a communication
`network 62 with the transaction serve 18 and with a merchantinterface 66 provided by a
`remote device such as a computer via a communication network 66(e.g. the internet).
`
`Square Exhibit 1006
`Page 15 of 34
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`Square Exhibit 1006
`Page 15 of 34
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`PCT/B2010/001367
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`16
`
`there is provided an online system for commercial
`Therefore,
`[0096]
`transactions using a transaction card 24 via a communication device 14. The system is
`exemplified by the transaction network 11 and includes a transaction apparatus 12
`linked to the communication device 14, a merchant server 60 providing a remote
`interface 66 to be accessed by the user and a transaction server 18 linked to both the
`communication device 14 and the merchant server 60. The merchant 66 interface
`
`allows for requesting a transaction. The merchant server 60 sendsthis request to the
`transaction server 18 which converts this information into an audio signal and sendsthis
`audio signal
`to the communication device 14 since it
`is linked therewith for the
`transmission of audio signals therebetween. The audio signal from the communication
`device 14 is sent to the transaction apparatus 12 which converts it to an appropriate
`format so as t