Abstract: A card reader has a housing, read head and device electronics that receive a raw signal from the read head and converts it into a processed digital signal that the microcontroller can interpret. A microcontroller with associated logic resources and code receives a digital signal from the device electronics and creates an encrypted and signed message based on the contents of the signal. An output jack is provided.

Abstract: A method of transmitting encrypted information to a mobile device and a payment service uses a card reader. The card reader has device electronics that include a microcontroller with logic resources with code and an output jack. A raw magnetic head signal is received from a reading of the card in the slot. The raw magnetic head signal is converted into a processed digital signal that the microcontroller can interpret. The logic resources and the code create both an encryption and signed signal. An encrypted and signed output jack message is delivered to the mobile device through the output jack based on the contents of the signal, with at least a portion of the output jack signal being encrypted.