Transaction system for integrated circuit cards

• US 5,577,121 A
• Filed: 06/09/1994
• Issued: 11/19/1996
• Est. Priority Date: 06/09/1994
• Status: Expired due to Fees

• Current Assignee: Touch Technologies Incorporated
• Original Assignee: Electronic Payment Services, Inc. (Fiserv Incorporated)
• Inventors: Davis, Terry L., Love, Michael, Hart, James A., Sears, John W., Russell, James F., Trice, Philip H., Imperia, Vincent A., O'Malley, Michael F.
• Primary Examiner(s): CANGIALOSI, SALVATORE A
• Application Number:
  US08/255,612
• Time in Patent Office: 894 Days
• Field of Search: 380/21, 380/23-25, 380/46
• US Class Current: 705/67
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/3676 Balancing accounts
• CPC Class Codes: G06Q 20/401 Transaction verification
• CPC Class Codes: G06Q 20/4093 Monitoring of device authentication
• CPC Class Codes: G06Q 20/40975 using encryption therefor
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: H04L 2209/56 Financial cryptography, e.g. electronic payment or e-cash
• CPC Class Codes: H04L 9/3247 involving digital signatures
• CPC Class Codes: H04L 9/3263 involving certificates, e.g. public key certificate [PKC] or attribute certificate [AC]; Public key infrastructure [PKI] arrangements network architectures or network communication protocols for supporting authentication of entities using certificates in a packet data network H04L63/0823
• CPC Class Codes: H04L 9/3271 using challenge-response

Abstract

A transaction system and method of conducting a transaction between in integrated circuit (IC) card and a transaction terminal which includes a security module comprises establishing communication between the terminal and the IC card. Separate session keys are generated in the IC card using data stored in the IC card and a code associated with the particular IC card and the security module using data stored in the security module, and the code associated with the particular IC card. The session key generated by the IC card is used to encrypt data using an encryption algorithm to obtain a first result and the session key generated by the security module is used to encrypt the same data using the same encryption algorithm to obtain a second result. The first and second results are compared to enable the terminal to conduct the transaction only if the comparison establishes that the first result and the second result are identical. In one embodiment, the invention further comprises generating a transaction signature by the IC card using transaction data and data stored in the IC card, generating a transaction signature by the security module using transaction data and data stored in the security module and storing the transaction signatures generated by the IC card and the security module for creating an audit trail for the transaction.

Claims

1. A method of conducting a transaction between an integrated circuit (IC) card and a transaction terminal which includes a security module comprising the steps of:

establishing communication between the terminal and the IC card;

separately generating at the initiation of and under the control of the transaction terminal a session key in the IC card using data stored in the IC card and a code associated with the particular IC card and in the security module using data stored in the security module and the code associated with the IC card;

using the session key generated by the IC card to encrypt data using an encryption algorithm to obtain a first result and using the session key generated by the security module to encrypt the same data using the same encryption algorithm to obtain a second result; and

comparing the first result and the second result and enabling the terminal to conduct the transaction only if the comparison establishes that the first result and the second result are identical.

2. The method as recited in claim 1 wherein the first result is obtained within the IC card and the second result is obtained within the security module.

3. The method as recited in claim 2 wherein the comparison is accomplished within the security module.

4. The method as recited in claim 1 further comprising the steps of:

using the session key generated by the IC card to encrypt a random number using an encryption algorithm within the IC card;

using the session key generated by the security module to encrypt the same random number using the same encryption algorithm within the IC card; and

comparing, within the IC card, the encrypted random number from the security module with the encrypted random number of the IC card for validating the terminal and the security module if the comparison establishes that the encrypted random numbers are identical.

5. The method as recited in claim 1 further comprising the steps of:

generating a transaction signature by the IC card using transaction data and data stored in the IC card;

generating a transaction signature by the security module using transaction data and data stored in the security module; and

storing the transaction signatures generated by the IC card and the security module for creating an audit trail for the transaction.

6. The method as recited in claim 5 wherein the transaction signatures are stored in the transaction terminal.

7. The method as recited in claim 1 wherein the transaction comprises passing value between the IC card and the transaction terminal.

8. The method as recited in claim 5 wherein the transaction signature is generated by the IC card by:

generating a signing key in the IC card using data stored in the IC card and a transaction count associated with the IC card; and

using the signing key generated by the IC card to encrypt transaction data to provide the transaction signature.

9. The method as recited in claim 8 wherein the data used to generate the signing key comprises a derived signature key obtained by encrypting a code associated with the particular IC card with a control signature key.

10. The method as recited in claim 5 wherein the security module transaction signature is generated by:

generating a security module signing key using data stored in the security module and a transaction number associated with the security module; and

encrypting transaction data, a transaction account associated with the IC card and at least a portion of the transaction signature of the IC card using the security module signing key and an encryption algorithm to provide the security module transaction signature.

11. The method as recited in claim 10 wherein the data used for generating the security module signing key comprises a derived signature key obtained by encrypting a code associated with the particular security module with a control signature key using an encryption algorithm.

12. The method as recited in claim 1 wherein the generation of the session key in the IC card, the generation of the session key in the security module, the encryption of data using the session keys and the comparison of the results is performed under control of and at the direction of the transaction terminal.

13. The method as recited in claim 1 wherein the code associated with the security module which is used to generate the derived signature key is the serial number of the security module.

14. The method as recited in claim 1 wherein the transaction comprises a transfer of value from the IC card to the terminal and wherein the transfer of value comprises the steps of:

decrementing a value balance stored within the IC card by the amount of the transaction;

encrypting within the IC card the transaction amount using the IC card session key and an encryption algorithm to generate a verification certificate;

encrypting, within the security module, the transaction amount using the security module session key and an encryption algorithm and comparing within the IC card the result with the verification certificate; and

confirming the transfer of value if the comparison shows that the compared data are identical.

15. The method as recited in claim 1 wherein the transaction comprises transferring value to the IC card from an account of a holder of the IC card at a financial institution further comprising the steps of:

separately generating a second session key in the terminal security module using data stored in the terminal security module and a transaction number associated with the terminal security module and in a second security module of an authorization system associated with the financial institution using the terminal security module transaction number and data stored in the second security module;

using the second session key generated by the terminal security module to encrypt data within the terminal security module to obtain a third result and using the second session key generated by the second security module to encrypt the same data using the same encryption algorithm to obtain a fourth result; and

comparing the third result and the fourth result to establish a secure session between the terminal and the authorization system if the third and fourth result are identical for transferring value from the IC cardholder account to the IC card.

16. The method as recited in claim 15 further comprising the steps of:

reading from the IC card data associated with the IC card;

obtaining data from a holder of the IC card;

verifying, by the authorization system, the IC card data and the cardholder data;

generating, by the second security module an authorization certificate by encrypting the amount of value to be transferred from the account of the holder of the IC card to the IC card using an authorization session key and an encryption algorithm;

decrypting in the IC card the authorization certificate using an authorization session key generated in the IC card and an encryption algorithm; and

comparing the decrypted authorization certificate with the transaction amount and transferring the transaction amount to the IC card only if the comparison shows that the compared data are identical.

17. The method as recited in claim 16 wherein the authorization session key in the second security module is established by encrypting a derived authorization key stored in the second security module with the second session key and further comprising the steps of:

decrypting by the first security module the encrypted authorization certificate using the second session key and an encryption algorithm; and

re-encrypting by the first security module the decrypted authorization certificate using the first session key and an encryption algorithm prior to the authorization certificate being decrypted by the IC card.

18. In a transaction system which includes at least one integrated circuit (IC) card for cooperating with a transaction terminal to perform transactions, the IC card including a processor, memory, data stored in the memory and a program stored in the memory, and the terminal including an IC card reader/writer device having a processor and memory with a stored program and a security module communicating with the reader/writer device, the security module including a processor, memory, data stored in the memory and a program stored in the memory, a method of establishing a secure audit trail for verifying a transaction between the IC card and the terminal, the method comprising the steps of:

generating, by the IC card, a transaction signature using transaction data and data stored in the IC card;

generating, by the security module, a transaction signature using transaction data and data stored in the security module; and

storing the IC card transaction signature and the security module transaction signature.

19. The method as recited in claim 18 wherein the IC card transaction signature is generated by encrypting transaction data using a signing key and wherein the security module transaction signature is generated by encrypting transaction data utilizing a signing key.

20. The method as recited in claim 19 wherein the IC card signing key is based upon transaction count data maintained by the IC card.

21. The method as recited in claim 19 wherein the security module signing key is based upon transaction count data maintained within the security module.

22. The method as recited in claim 18 wherein the security module is located within the transaction terminal.

23. The method as recited in claim 18 wherein the security module is not located within the transaction terminal.

24. The method as recited in claim 18 wherein the transaction is a financial transaction involving the transfer of value between the IC card and the terminal and wherein the transaction data used to generate the transaction signatures comprises the amount of value transferred.

25. The method as recited in claim 21 wherein the security module transaction signature is generated by encrypting transaction data, the transaction count data maintained by the IC card, and at least a portion of the IC card transaction signature utilizing the signing key.

26. In a transaction system which includes at least one integrated circuit (IC) card for cooperating with a transaction terminal to perform transactions, the IC card including a processor, memory, data stored in the memory and a program stored in the memory, and the terminal including an IC card reader/writer device having a processor, memory and a program stored in the memory, and a security module communicating with the reader/writer device, the security module including a processor, memory, data stored in the memory and a program stored in the memory, a method of verifying the validity of the IC card and the terminal at the initiation of and under the control of the terminal for establishing a secure session between the IC card and the terminal to enable the performance of a transaction, the method comprising:

(a) inserting the IC card into the terminal to establish communication between the reader/writer device and the IC card;

(b) reading, by the reader/writer device from the IC card, an IC card identification number and sending the identification number to the security module;

(c) generating, by the security module, a derived verification key by encrypting the identification number of the IC card with a verification control key stored in the memory of the security module using an encryption algorithm;

(d) generating, by the IC card, a transaction number;

(e) reading, by the reader/writer device from the IC card, the transaction number and sending the transaction number to the security module;

(f) generating, by the IC card, a session key by encrypting the IC card transaction number with a derived verification key stored in the memory of the IC card using the encryption algorithm;

(g) generating, by the IC card, a response certificate by encrypting a random number with the session key generated by the IC card using the encryption algorithm;

(h) reading, by the reader/writer device, the response certificate generated by the IC card and sending the IC card response certificate to the security module;

(i) generating, by the security module, a session key by encrypting the IC card transaction number with the derived verification key using the encryption algorithm;

(j) generating, by the security module, a response certificate by encrypting the random number with the session key generated by the security module using the encryption algorithm;

(k) comparing, by the security module, the received IC card response certificate with the response certificate generated by the security module and verifying that (1) the session keys are identical and (2) that the IC card is valid, if the response certificates are identical;

(l) generating, by the security module, a derived password by encrypting the serial number of the IC card with a password key stored in the memory of the security module utilizing the encryption algorithm;

(m) generating, by the security module, a password cryptogram by encrypting the derived password with the session key using the encryption algorithm;

(n) reading, by the reader/writer device, the password cryptogram from the security module and sending the password cryptogram to the IC card;

(o) generating, by the IC card, a password by decrypting the password cryptogram with the session key using the encryption algorithm; and

(p) comparing, by the IC card, the generated password with a derived password stored in the memory of the IC card and verifying (1) the validity of the security module and the terminal and (2) the establishment of a secure session between the IC card, the security module, and the terminal, if the generated password and the retrieved derived password are identical.

27. The method as recited in claim 26 wherein the IC card transaction number is incremented by one each time the IC card is used for a transaction.

28. The method as recited in claim 27 further comprising the step of generating, by the security module, the random number.

29. The method as recited in claim 26 wherein the IC card contains a plurality of derived verification keys and wherein the method further comprises the step of selecting, by the reader/writer device, a derived verification key for use by the IC card in generating the IC card session key.

30. The method as recited in claim 26 wherein the security module includes a plurality of verification keys, the method further comprising the step of selecting, by the reader/writer device, a verification key for use by the security module in generating the derived verification key.

31. The method as recited in claim 26 wherein the security module includes a plurality of password keys, the method further comprising the step of selecting, by the reader/writer device, a password key for use by the security module in generating the derived password.

32. In a transaction system which includes at least one integrated circuit (IC) card for cooperating with a transaction terminal to perform transactions, the IC card including a processor, memory, data stored in the memory and a program stored in the memory, and the terminal including an IC card reader/writer device having a processor, memory and a program stored in the memory, and a security module communicating with the reader/writer device, the security module including a processor, memory, data stored in the memory and a program stored in the memory, a method of establishing a secure audit trail at the initiation of and under the control of the terminal for verifying each transaction between the IC card and the terminal, the method comprising the steps of:

(a) generating, by the IC card, a transaction signature using;

(1) the amount of the transaction, (2) an IC card transaction number, and (3) a derived signature key stored in the IC card memory;

(b) reading, by the reader/writer device, the transaction signature generated by the IC card and storing the IC card transaction signature in the reader/writer device memory;

(c) generating, by the security module, a transaction signature using;

(1) the amount of the transaction, (2) the IC card transaction number, (3) the IC card transaction signature, (4) a security module transaction number, and (5) a derived signature key stored in the security module memory; and

(d) reading, by the reader/writer device, the transaction signature generated by the security module and storing the security module transaction signature in the reader/writer device memory.

33. The method as recited in claim 32 wherein the IC card transaction signature is generated by:

encrypting the IC card transaction number with the derived signature key using an encryption algorithm to obtain a signing key; and

encrypting the amount of the transaction with the signing key using an encryption algorithm to provide the transaction signature.

34. The method as recited in claim 32 wherein the security module transaction signature is generated by:

encrypting the security module transaction number with the derived signature key using an encryption algorithm to provide a signing key; and

encrypting the amount of the transaction, the IC card transaction number, and at least a portion of the IC card transaction signature with the signing key using an encryption algorithm to provide the security module transaction signature.

35. The method as recited in claim 32 wherein the IC card transaction number is sequentially indexed each time a transaction is performed using the IC card.

36. The method as recited in claim 32 wherein the security module transaction number is sequentially indexed each time a transaction is performed with the terminal.

37. The method as recited in claim 32 further comprising the steps of requesting by the reader/writer device the IC card and the security module transaction signatures.