Secure PIN Transaction Processing via Remote Key Management
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Solution Overview
Problem
Current PIN-related debit transaction processing systems are costly due to the need for secure storage of encryption keys on terminals and are limited by the requirement to operate independently of public networks, hindering widespread adoption and increasing terminal costs.
Innovation Solution
A two-system approach where one system processes encrypted payment information and generates a PIN scrambling key, while another system descrambles and encrypts the PIN code, ensuring secure processing without permanently storing encryption keys on the terminal and maintaining track data separate from PIN code data until submission to the EFT network.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If encryption keys are permanently stored on the terminal to ensure security, then security is improved, but terminal cost increases
Solution Approach 1:
The patent extracts the encryption key storage function from the terminal device itself and relocates it to a secure remote server. The terminal no longer permanently stores encryption keys, instead receiving them temporarily during transaction processing. This extraction resolves the contradiction by maintaining security (through remote key management) while reducing terminal cost (by eliminating secure key storage hardware requirements).
Solution Approach 2:
The patent introduces a secure remote server as an intermediary between the terminal and the encryption key storage. This intermediary manages key distribution, storage, and revocation centrally, allowing terminals to operate securely without having permanent key storage capability. The intermediary resolves the contradiction by providing centralized security management while enabling low-cost terminal deployment.
2Reliability
If terminals operate independently of public networks to maintain security, then security is improved, but adaptability decreases
Solution Approach 1:
The secure remote server acts as a trusted intermediary that enables terminals to safely use public networks. The server encrypts communications and manages security protocols, allowing terminals to connect via Internet or other public networks without compromising security. This resolves the contradiction by enabling network connectivity (improving adaptability) while maintaining security through the intermediary's protection.
Solution Approach 2:
The patent replaces the mechanical isolation approach (physically separating terminals from public networks) with cryptographic substitution (using encryption and secure protocols over public networks). Instead of requiring terminals to be physically isolated to maintain security, the system uses digital security mechanisms that work over any network, thereby improving adaptability while preserving security.
3Productivity
If track data and PIN code data are combined in the terminal, then processing efficiency is improved, but security decreases
Solution Approach 1:
The patent segments the handling of track data and PIN code data into separate processing paths. Track data is processed and encrypted separately, then transmitted to the secure remote server. PIN code data is collected separately and transmitted through a different secure channel. This segmentation ensures that even if one path is compromised, the other remains secure, resolving the contradiction by maintaining security through separation while achieving efficiency through coordinated processing.
Solution Approach 2:
The secure remote server serves as an intermediary that receives and combines track data and PIN code data in a controlled, secure environment. Rather than combining data in the terminal (which would compromise security), the server acts as a trusted mediator that assembles the complete transaction data only after both components are securely transmitted. This resolves the contradiction by maintaining security through separate transmission while achieving processing efficiency through centralized coordination.
Data Source
AI summary
Certain exemplary embodiments relate to techniques for processing PIN-inclusive transactions in connection with an electronic device or terminal, e.g., where PIN code encryption keys are not necessarily stored on the electronic device or terminal, and/or where payment instrument data is maintained in a separate system from PIN code data at least until certain elements are combined in a highly secure system for submission to an electronic funds transfer network. One or more separate or physically separated systems may be used in this regard, e.g., taking advantage of more prevalent computer networks such as the Internet. Similarly, the ability to provide less expensive terminals or electronic devices at a point-of-sale, point-of-purchase, etc., may be advantageous. The interchange rate is not necessarily driven up in certain example instances.