POS Terminal Key Exchange for Secure Transaction Encryption
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Solution Overview
Problem
Existing payment systems face challenges in securing transaction data transmission from point of sale terminals to issuers, including high costs for specialized hardware, complex key management, and inefficient key distribution processes, which can be burdensome and expensive.
Innovation Solution
A method involving generating a terminal-specific symmetric key at the point of sale terminal, encrypting it with a public key, and sending it to a remote server for storage and decryption, allowing secure transmission of transaction data without the need for complex hardware or frequent key updates.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If symmetric keys are stored in tamper-resistant HSM modules at point of sale terminals, then transaction data encryption security is improved, but device cost and complexity increase significantly
Solution Approach 1:
The patent introduces a remote key management server as an intermediary between the issuer and point of sale terminals. This server handles key generation, distribution, and management operations, eliminating the need for each terminal to have complex local key management infrastructure. The terminal only needs to communicate with the server for key-related operations, significantly reducing local hardware complexity while maintaining security.
Solution Approach 2:
The patent replaces the mechanical hardware-based key storage system (HSM modules) with a software-based key management system that operates over a network. Instead of relying on physical tamper-resistant devices, the system uses cryptographic protocols and secure communication channels to achieve the same security goals with simpler hardware requirements at the terminal level.
2Reliability
If symmetric keys are distributed to thousands of point of sale terminals regularly, then key security is improved, but key management burden and costs increase
Solution Approach 1:
The patent implements a self-service key management model where the remote key management server automatically handles key generation, distribution, rotation, and revocation operations. The system can autonomously manage keys for thousands of terminals without requiring manual intervention for each key update operation. Terminals can request new keys or key updates by simply communicating with the server, which automatically processes these requests and distributes updated keys as needed.
3Reliability
If two-way communication is implemented between issuer and point of sale terminals for key distribution, then key security is improved, but processing burden on payment system increases
Solution Approach 1:
The remote key management server acts as a central intermediary that consolidates all key distribution communications. Instead of requiring direct two-way communication between each terminal and the issuer, the server receives key management requests from terminals and processes them centrally. This reduces the communication burden on the overall system by creating a single point of control for key distribution operations.
Data Source
AI summary
A method is disclosed. The method includes generating an initial key after interacting with an access device, storing the initial key at a key storage location, altering the initial key with a public key to form an altered key, and sending the altered key to a server computer along with an identifier for the access device. The altered key is changed to the initial key at the server computer and is stored with the identifier in a database in operative communication with the server computer. The initial keys that are stored at the key storage location and in the database are used to alter and restore transaction data associated with multiple financial transactions that are conducted using the access device.