Importance

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Abstract

An electronic funds transfer system wherein it is required that a bank be reasonably guaranteed that the two parties to a retail transaction (i.e., a person and a retailer) agree on the transaction before the funds transfer takes place. The message including the transaction information is encrypted by the person using a unique encryption key (K.sub.P) stored in a highly secure storage location in his own personal portable transaction device (XATR) and his data storage and transfer card (DSTC) and this first encrypted message is sent to the retailer who doubly encrypts the initially received encrypted message from P under his own unique encryption key (K.sub.R) and this doubly encrypted message is sent to the bank. The person also sends the transaction message to the retailer in clear, and the retailer first verifies the message and then, utilizing his own encryption key (K.sub.R), encrypts same and similarly sends it to the bank. The bank utilizing unique retailer and customer identification data sent with the message, accesses a 'key' file and first extracts the retailer's key (K.sub.R) and decrypts a first portion of the message, extracts the person's key (K.sub.P) and decrypts a second portion of the received message. The bank then compares a predetermined portion of the transaction message originating with the person with a similar portion received from the retailer and if identical, the appropriate funds transfer is made. If the messages do not agree, a predetermined default procedure is initiated.

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First Claim