Importance

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Abstract

The present invention relates to a system and method for secure verification of electronic transactions, and in particular secure processing of personal identification numbers when third party processors are involved. In an embodiment, a variable length PIN associated with a credit card or debit card is encrypted, then hashed using a one-way hash algorithm before it is passed along to and stored by a third party processor. The encrypted-hashed PIN always remains in an encrypted form while in the hands of the third party processor. At the third party processor, secure cryptographic hardware is used to store the one-way hash algorithm. Encrypted PIN values received for verification are converted and hashed using the one-way hash algorithm, and the resulting hashed-encrypted value is compared against the hashed-encrypted PIN values previously stored at the third party processor. As the PIN has a variable length, and the third party processor has no access to the hash algorithm, the encrypted PIN values are highly resistant to reverse engineering or decryption.

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First Claim