Method and system for transmission of financial data

• US 4,984,270 A
• Filed: 06/19/1987
• Issued: 01/08/1991
• Est. Priority Date: 06/19/1987
• Status: Expired due to Fees

• Current Assignee: The Exchange System
• Original Assignee: The Exchange System
• Inventors: LaBounty, Jack
• Primary Examiner(s): Tarcza, Thomas H.
• Assistant Examiner(s): Cain, David
• Application Number:
  US07/064,169
• Time in Patent Office: 1,299 Days
• Field of Search: 380/24, 380/23, 380/25, 380/43
• US Class Current: 705/72
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/3829 involving key management
• CPC Class Codes: G06Q 20/4012 Verifying personal identification numbers [PIN]
• CPC Class Codes: G07F 7/1016 Devices or methods for securing the PIN and other transaction-data, e.g. by encryption arrangements for secret communication, see H04L9/00

Abstract

An improved system for transmission financial data includes, in preferred embodiments, an encryption key stored on a bank card and used to encrypt preselected data prior to transmission. Encrypted data is then transmitted through all intermediate computers without decryption and reencryption. Decryption occurs only at the final destination, where the encryption key has been stored. In preferred embodiments, the encryption key is combined with a terminal identification valve to provide further security.

Claims

1. A method of securing electronic data relating to a customer-initiated financial transaction or the like for transmission from a transaction location to a remote receiving location, comprising:

issuing the customer a financial transaction identification card having an issuer security key encoded thereon, the issuer security key corresponding to the remote receiving location;

storing the issuer security key at the remote receiving location;

at the time of a financial transaction, reading the issuer security key at the transaction location from the financial transaction identification card;

at the transaction location, encrypting preselected data relating to the financial transaction using an encryption algorithm and the issuer security key as the encryption key;

transmitting data relating to the financial transaction, including the encrypted data, to the remote receiving location; and

decrypting the encrypted data at the remote location using the issuer security key stored at the remote location.

2. The method of claim 1 wherein the financial transaction identification card is manufactured in accordance with the ISO 7811/2 and ISO 7318 standards, as published in ISO documents having reference numbers ISO 7811/2-1985(E) and ISO 7813-1985(E), respectively, and the issuer security key is encoded on the card at the location formerly used for clock bits, thereby enabling the key to be encoded without modification of existing data formats for data encoded on the financial transaction identification card.

3. The method of claim 1 wherein the transaction location is assigned a unique value, and the issuer security key is combined with the transaction location value and the resulting value is used as the encryption key to encrypt the preselected data at the transaction location and decrypt the preselected data at the remote location.

4. The method of claim 3 wherein the issuer security key is logically exclusive OR'"'"'d with the transaction location value.

5. A method of securing electronic data relating to a customer-initiated financial transaction or the like for transmission from a transaction location to a remote receiving location, comprising:

issuing the customer a financial transaction identification card having an issuer security key encoded thereon, the issuer security key corresponding to the remote receiving location;

storing the issuer security key at the remote receiving location;

at the time of a financial transaction, reading the issuer security key at the transaction location from the financial transaction identification card;

at the transaction location, encrypting preselected data relating to the financial transaction using an encryption algorithm and the issuer security key as the encryption key;

transmitting data relating to the financial transaction, including the encrypted data, to the remote receiving location through one or more intermediate nodes; and

decrypting the encrypted data at the remote location using the issuer security key stored at the remote location.