Abstract: A system and method for processing retail transactions using a mobile device wherein a merchant has a mobile data processing device (such as a smart phone) into which he enters information about the transaction, then prepares a message to the processor of the transaction using a magnetic stripe reader coupled to his data processing device to provide a token which is authenticated by the processor of the transaction. The system may prepare a message regarding the transaction to a customer so that the customer may participate in the transaction, e.g., by entering an account number or PIN at his terminal, content which is used by the processor without being available to the merchant.

Abstract: A system, method and stored program for processing payments and other financial transactions. The payment processing system of the present invention includes an input device for capturing information relevant to a customer's transaction (for example, credit card information) and storing that information securely associated with the customer. When it is determined that the customer owes a balance (for example, after an insurance company or other third party payor pays a portion of the customer's insurance claim), the balance remaining due is then calculated and submitted as a new financial transaction, using the stored information associated with the customer, e.g., in a new credit card charge, without having placed a hold on those funds as apart of an earlier transaction.