US20130124424A1 - System and method for point-to-point encryption with adjunct terminal - Google Patents

Abstract

A system for point-to-point encryption is provided. A card reader system reads unencrypted card data stored on a magnetic stripe of a card and encrypts the card data, the card reader system being contained in a first housing. A point of sale device coupled to the card reader system and contained in a second housing separate from the first housing has a user interface for obtaining a transaction amount. A transaction request system transmits the transaction amount and the encrypted card data to an authorization gateway, wherein the unencrypted card data is prevented from being processed by the point of sale device.

Description

FIELD OF THE INVENTION
• The invention relates to providing point-to-point encryption, and more particularly to a system and method for point-to-point encryption that uses an adjunct terminal to replace data reading equipment on a standardized terminal configuration.
BACKGROUND OF THE INVENTION
• Equipment for reading sensitive information is known in the art. Such equipment includes employee identification badge readers, credit card readers, and bar code readers, and the sensitive information read by each different type of reader is used to control access to the information that is being read.
• Unauthorized persons often attempt to obtain such sensitive information, such as by reading the device, so as to use the sensitive information for improper and unauthorized purposes. In the U.S. alone, billions of dollars are lost every year to fraudulent activity involving the unauthorized use of sensitive information, despite ongoing attempts by numerous parties to prevent such losses.
SUMMARY OF THE INVENTION
• A system and method for point-to-point encryption with an adjunct terminal are provided that eliminate access to sensitive information by corruption of common readers that are used for reading devices that store sensitive information. In particular, a system and method for point-to-point encryption with an adjunct terminal are provided that can be used with a point of sale device and a credit card magnetic card reader.
BRIEF DESCRIPTION OF THE SEVERAL VIEWS OF THE DRAWINGS
• FIG. 1 is a diagram of a system for secure transaction processing in accordance with an exemplary embodiment of the present invention;
• FIG. 2 is diagram of system for processing transaction data in accordance with an exemplary embodiment of the present invention;
• FIG. 3 is a diagram of a system for generating a token request in accordance with an exemplary embodiment of the present invention;
• FIG. 4 is a flowchart of a method for processing a token request in accordance with an exemplary embodiment of the present invention;
• FIG. 5 is a flow chart of a method for processing transaction data in accordance with an exemplary embodiment of the present invention;
• FIG. 6 is a flow chart of a method for processing authorization data in accordance with an exemplary embodiment of the present invention; and
• FIG. 7 is a diagram of a system for a stand-alone card reader for use with a point of sale device in accordance with an exemplary embodiment of the present invention.
DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS
• In the description that follows, like parts are marked throughout the specification and drawings with the same reference numerals, respectively. The drawing figures might not be to scale and certain components can be shown in generalized or schematic form and identified by commercial designations in the interest of clarity and conciseness.
• FIG. 1 is a diagram of asystem100 for secure transaction processing in accordance with an exemplary embodiment of the present invention.System100 provides an architecture that separate a card reader system from a point of sale device so that the point of sale device cannot be compromised to extract unencrypted magnetic card stripe data.
• System100 includes point ofsale device102,card reader system104 andauthorization gateway106 and their associated component systems, each of which can be implemented in hardware or a suitable combination of hardware and software, and which can be one or more software systems for operation on a platform such as a point of sale card reader platform, a general purpose processing platform, or other suitable platforms. As used herein, “hardware” can include a combination of discrete components, an integrated circuit, an application-specific integrated circuit, a field programmable gate array, or other suitable hardware. As used herein, “software” can include one or more objects, agents, threads, lines of code, subroutines, separate software applications, two or more lines of code or other suitable software structures operating in two or more software applications or on two or more processors, or other suitable software structures. In one exemplary embodiment, software can include one or more lines of code or other suitable software structures operating in a general purpose software application, such as an operating system, and one or more lines of code or other suitable software structures operating in a specific purpose software application.Card reader system104 can provide magnetic card stripe reader functionality such as is normally found on a point of sale device.Authorization gateway106 can be a credit card authorization gateway used by a merchant for authorization of transactions, tracking of transaction data, and other suitable purposes. As used herein, a credit card refers to any suitable payment device, such as a credit account card, a debit account card, a stored value card, a wireless device that stores account data for a payment account, or other suitable devices or accounts for performing transaction payment without currency.
• Point ofsale device102 can be a general purpose computer, a dedicated point of sale device that includes a processor, data memory, one or more data ports, or other suitable devices. Point ofsale device102 includestoken handling system108 andtransaction permission system110, which are used to interface withcard reader system104 andauthorization gateway106.Token handling system108 receives a token fromauthorization gateway106 and allows a transaction to be requested. In one exemplary embodiment,token handling system108 can store the token, and can generate a transaction permission request or other suitable data that is used bytransaction permission system110 to allow a transaction to proceed.
• Transaction permission system110 receives a token, a transaction permission request, or other suitable data fromtoken handling system108 or other suitable systems and generates transaction data. In one exemplary embodiment,transaction permission system110 can receive a transaction identifier fromauthorization gateway106 ortoken handling system108 that is associated with a token request from acard reader system104 and can include that transaction identifier with transaction data that is transmitted toauthorization gateway106, so that the card read bycard reader system104 can be associated with the transaction at point ofsale device102. In this exemplary embodiment,authorization gateway106 transmits the transaction identifier to point ofsale device102 that is associated with acard reader system104 in response to receiving encrypted or tokenized credit card data from thecard reader system104. In another exemplary embodiment,transaction permission system110 receives the transaction identifier in addition to a token that is received bytoken handling system108, such as from anauthorization gateway106 in response to credit card data received from acard reader system104 associated with point ofsale device102, and uses the transaction identifier and the token to request authorization, so that the card read bycard reader system104 can be associated with the transaction at point ofsale device102. Likewise, other suitable types of data and processes can be handled bytransaction permission system110 to coordinate the operation ofcard reader system104, point ofsale device102 andauthorization gateway106.
• Token request system112 ofcard reader system104 generates token requests based upon magnetic card data read from a magnetic card stripe reader device. In one exemplary embodiment,token request system112 can read card data encoded in a magnetic data storage media of a credit card, encrypt the card data, and include the encrypted card data in the token request so that theauthorization gateway106 or other suitable systems can determine whether the card data is from a valid credit card, whether to generate a preliminary authorization confirmation, whether to authorize the amount of a transaction, or for other suitable purposes.
• Transaction request system114 requests a transaction identifier fromauthorization gateway106. In one exemplary embodiment, transaction request system114 can generate an identifier associated with point ofsale device102, such as a time, point-of-sale device identification number or other suitable data that allows the transaction associated with a credit card that has been read bycard reader system104 to be associated with a subsequent transaction authorization request. In this exemplary embodiment, a purchaser presents a credit card for payment, and the credit card data encoded in the magnetic media of the credit card is read by a card reader device. The card data is then encoded in a token request, and the token request is transmitted with a transaction identifier, which can also be provided to point ofsale device102, either directly (through a wireless or wire line connection) or indirectly (such as by transmitting the transaction identifier to point ofsale device102 throughauthorization gateway106 in combination with the token request and the subsequent token). Likewise, transaction request system114 can include certain preset flags, such as a ceiling limit of a certain predetermined dollar amount that is automatically assigned, entered by a user or provided in other suitable manners, so that an initial preliminary authorization of a transaction amount for the account associated with the credit card that has been read bycard reader system104 can be performed.
• Authorization gateway106 is coupled to point ofsale device102 andcard reader system104 over a communications medium, such as the Internet, the public switched telephone network or other suitable communications media.Authorization gateway106 receives a token request, a transaction request and other suitable data fromcard reader system104. In response to the token request,token generation system116 decrypts the encrypted card data and performs authorization by determining whether the credit card associated with the card data is a valid credit card. In one exemplary embodiment, authorization can include evaluation of the credit card number by checking number fields to determine whether they include invalid numbers in any fields, comparing the credit card number against a watch list of stolen credit cards, submission of the credit card number to the associated credit card network for authorization by the network or the card issuing bank, or other suitable processes can be performed. Because of the volume of credit card transactions, these authorization processes are performed by algorithms operating on general purpose processing platforms or by special purpose computers that are optimized for authorization processing.
• Transaction coordination system118 generates a transaction identifier to be transmitted totransaction permission system110. In one exemplary embodiment,transaction coordination system118 receives a transaction request from transaction request system114, determines the identity of the associated point of sale device (such as from an identifier included in the transaction request or from a list identifying a point of sale device associated with transaction request system114), determines whether to perform preauthorization of a fixed amount, determines whether additional authorization processing bytransaction authorization system120 is required, or whether other suitable transaction coordination processes should be performed.Transaction coordination system118 can coordinate with a credit card network or card issuing bank, such as to flag a transaction as requiring contact with the card issuing bank and authorization for a predetermined amount or other suitable processes.
• Transaction authorization system120 receives transaction data from point ofsale device102 and performs transaction authorization processing. In one exemplary embodiment,system100 can be used with point of sale terminals in locations such as fast food restaurants, gas stations, or other locations where the amount of purchase is typically below a predetermined ceiling amount, and authorization of that amount can be initially performed at the point in the transaction processing where a token is initially requested. In another exemplary embodiment,transaction authorization system120 can receive a transaction amount from point ofsale device102 after point ofsale device102 receives a preliminary authorization indication, a token, or other suitable data, and can request authorization to charge a card holder's account for that transaction amount from the card issuing bank, the credit card network or other suitable systems. Likewise, other suitable transaction processes can be performed.
• Card issuing bank orcard network122 perform authorization processing for a transaction amount and a credit card account number. In one exemplary embodiment, card issuing bank orcard network122 can be a card issuing bank, a credit card authorization network, a combination of a card issuing bank and a credit card authorization network, a debit network, the automated clearing house (ACM), a prepaid or stored value card services provider or other suitable systems that provide a secured approval for a transaction authorization request such that payment of the transaction amount is guaranteed by a party associated with the system.
• In operation,system100 is used to provide secure and separate magnetic credit card stripe reading functionality for point of sale devices, such as existing point of sale devices that already include a magnetic credit card stripe reader that is to be bypassed, point of sale devices that do not have a magnetic credit card stripe reader, or other suitable systems.System100 uses a separatecard reader system104 that is connected to anauthorization gateway106 over a communications medium, and which is typically placed next to or in the vicinity of point ofsale device102. The user of point ofsale device102 receives a card from a purchaser and scans the card throughcard reader system104.Card reader system104 then transmits a token request toauthorization gateway106, so as to remove point ofsale device102 from having access to the magnetic card data. Because magnetic card stripe data security through point of sale devices has been compromised, the use ofcard reader system104 to perform card reading eliminates the need for point ofsale device102 to access the data stored in the magnetic stripe of credit cards. The encryption performed bycard reader system104 and other security processes performed betweencard reader system104 andauthorization gateway106 can be updated as needed, independently controlled and proprietary, so as to minimize the risk of exposure of the technology ofcard reader system104 to third parties, reverse engineering and “hacking” ofcard reader system104 by third parties to allow for unauthorized extraction of credit card data, and prevention or mitigation of other risks.
• Existing point of sale devices can be modified to interface with tokens generated bytoken generation system116. In this exemplary embodiment, point ofsale device102 may require a software download or other upgrades or updates in order to interface withauthorization gateway106, so as to exclude magnetic card data read by point ofsale device102 and to only utilize magnetic card data read bycard reader system104. Additional security functionality can also be provided, such as de-activation of any card reader present in point ofsale device102, the use of any such card reader for other purposes (such as to generate an alert if a user is attempting to use that card reader to read magnetic stripe data of a credit card), or other suitable functionality.
• FIG. 2 is diagram ofsystem200 for processing transaction data in accordance with an exemplary embodiment of the present invention.System200 includes point ofsale device202,card reader system204, andauthorization gateway206, each of which can be implemented in hardware or a suitable combination of hardware and software, and which can be one or more software systems for operation on a general purpose processing platform, a special purpose processing platform or other suitable platforms.
• Point ofsale device202 includestoken handling system208 andtransaction permission system210.Token handling system208 generates a token request or other suitable data when a transaction is presented for authorization. Likewise,transaction permission system210 reads the transaction data such as the items being purchased, the amount, and other suitable data, and generates a transaction authorization request. This transaction authorization request is transmitted tocard reader system204.
• Card reader system204 includestoken request system212 and transaction buffer system214. In one exemplary embodiment, point ofsale device202 can insert a predetermined block of data that is detected and extracted bycard reader system204 or transaction buffer system214. In this exemplary embodiment, an operator of point ofsale device202 can scan a user identification card using a magnetic card reader on point ofsale device202, and point ofsale device202 can generate an authorization request using existing point ofsale device202 software where the user identification card data is used to replace the field in the authorization request where the magnetic card stripe data from a presented credit card would normally be encoded.Card reader system204 receives the authorization request, identifies the user identification card data where the magnetic card stripe data would normally be encoded, and extracts the magnetic card stripe data and replaces it with encrypted magnetic card stripe data. In this exemplary embodiment,card reader system204 allows an existing point ofsale device202 to be utilized but provides additional encryption security by excluding point ofsale device202 from accessing the magnetic card stripe data of the presented credit card.Token request system212 can be used to process the encrypted card data and add additional identifiers, such as to allowauthorization gateway206 to confirm thatcard reader system204 has generated or requested an authorization. Transaction buffer system214 can be used to store the authorization request in a predetermined field format, where the user identification card data or other field is identified for extraction and replacement with the scanned credit card and encrypted credit card data.
• Authorization gateway206 includestoken generation system216 andtransaction authorization system218. Because the transaction authorization request is received with an encrypted token request, it is unnecessary to coordinate the transaction with point ofsale device202 as insystem100, such thattoken generation system216 can decrypt the token request and provide the decrypted credit card number totransaction authorization system218 with the amount of the transaction.Transaction authorization system218 can perform authorization processing in conjunction with card issuing bank or acard authorization network220 or other suitable systems and receive authorization for charging the transaction amount against the associated card. The transaction authorization is then transmitted tocard reader system204 and the authorization with the token instead of a credit card account number is transmitted to point ofsale device202, which can track the transaction and perform additional merchant-related processes utilizing the token instead of the credit card account number, so that the credit card data is never received by point ofsale device202.Transaction permission system210 can then allow the transaction to proceed.
• In operation,system200 allows an existing point of sale device to interface with a separate card reader system, such as where the card reader system is placed between point ofsale device202 and a communications medium for connecting point ofsale device202 to anauthorization gateway206. In this exemplary embodiment,card reader system204 receives the authorization and transaction data and then adds the credit card data in an encrypted format so as to exclude point ofsale device202 from ever receiving credit card data.Card reader system204 can be proprietary and can be modified or updated as needed byauthorization gateway206 or other parties so as to ensure that the integrity of the encryption mechanism used to encrypt credit card account number data is maintained, and to prevent unauthorized third party access to the credit card account number data.
• FIG. 3 is a diagram of asystem300 for generating a token request in accordance with an exemplary embodiment of the present invention.System300 includes point ofsale device302,card reader system304, andauthorization gateway306, each of which can be implemented in hardware or a suitable combination of hardware and software, and which can be one or more software systems for operation on a general purpose processing platform, a special purpose processing platform or other suitable platforms.
• In this exemplary embodiment,card reader system304 is used to read a magnetic stripe of a credit card, and token request system312 generates a token request that includes encrypted credit card account number data for the token request. Point ofsale device302 includestoken handling system308 and transaction request system310, which are configured to detect a token request from token request system312 and to generate transaction data. In this exemplary embodiment,card reader system304 interfaces with point ofsale device302 through an interface, such as a USB port, an RS232 port, other suitable ports, a wireless interface such as an 802.1x device, or other suitable interfaces, and point ofsale device302 then performs standard transaction authorization request processing using the token instead of a data read from a magnetic card stripe of a credit card.
• Authorization gateway306 includestoken generation system314 and transaction authorization system316, which receive the token request and extract the credit card data.Token generation system314 can then determine whether the credit card is valid, such as by submitting the transaction for authorization through transaction authorization system316 to card issuing bank orcard network318 or in other suitable manners.Authorization gateway306 transmits the authorization request response to point ofsale device302.
• Point ofsale device302 receives the authorization response and determines whether the authorization has been approved, the token has been denied, such as due to fraudulent credit card data, or other suitable data. If the transaction has been approved, the token is stored bytoken handling system308 for subsequent merchant processing, or is otherwise used to approve the transaction and to perform suitable post-authorization processing. For example, a merchant may be required to submit transactions periodically for payment, to respond to requests for transaction verification, or to perform other suitable post-transaction processing. Likewise, transaction request system310 closes out the transaction authorization request and approves the authorization if the authorization request indicates approval.
• In operation,system300 allowscard reader system304 to be interfaced with point ofsale device302 through an existing point ofsale device302 interface. This process allowscard reader system304 to be provided with proprietary card reading and encryption technology to prevent point ofsale device302 from receiving the unencrypted card data, and thus provides additional security and protection from point of sale device malware, viruses, or other programs from third parties that are seeking unauthorized access to credit card account number data.
• FIG. 4 is a flowchart of amethod400 for processing a token request in accordance with an exemplary embodiment of the present invention.Method400 can be implemented as a series of algorithms operating on a general purpose computer so as to transform the general purpose computer into a special purpose processing platform. Whilemethod400 is presented as a flow chart, each method process can be implemented in software as an algorithm, and exemplary pseudo code is provided by way of example and not by limitation for various processes shown inmethod400. Such exemplary pseudo code can be readily adapted to various similar processes as discussed herein for this or other methods or systems.
• Method400 begins at402 where a credit card is scanned in a card reader system and encrypted. In one exemplary embodiment, the card reader system can be a card reader system that stands beside a point of sale device and which is an add on to the point of sale device, so as to allow the point of sale device's card reader to be bypassed or disabled, or to otherwise provide card reader functionality that does not allow unencrypted credit card account number data to be processed by a point of sale device. In one exemplary embodiment, the encryption can be performed by using a proprietary encryption technology that protects the credit card data from being intercepted by third parties, such as using a standard encryption process such as RSA or DES or a suitable proprietary equivalent. In addition to a magnetic card stripe reader,402 can invoke an algorithm, such as the following exemplary pseudo code:
• • 10 if card present, read magnetic stripe data
  • 20 execute encryption process
  • 30 store read data in buffer
    The method then proceeds to404.
• At404, a token request is generated, and at406, card authorization is requested. In one exemplary embodiment, the card reader can be a stand-alone card reader system that is located next to a point of sale device and that encrypts the credit card data, generates the token request, and generates the transaction identifier associated with a point of sale device, so as to allow the card to be authorized as part of the token generation process, and before a transaction amount is determined. In another exemplary embodiment, the card reader can be in line with the point of sale device, can interface through a data port of the point of sale device, or can otherwise be used in conjunction with a point of sale device. In this manner, the credit card reader can be a stand-alone system next to an existing point of sale device, or other suitable embodiments can be used. In one exemplary embodiment,404 and406 can invoke an algorithm, such as the following exemplary pseudo code:
• • 40 generate token request
  • 50 generate card authorization request
  • 60 transmit token request, authorization request
    The method then proceeds to408.
• At408, it is determined whether the card is authorized. In one exemplary embodiment, the token can be decrypted by an authorization gateway or suitable systems, and authorization processes using the credit card account number can be performed, such as a number validation check, a watch list check, transmission of the credit card number to a credit card network or card issuing bank for preliminary authorization, or other suitable processes. In one exemplary embodiment,408 can invoke an algorithm, such as the following exemplary pseudo code:
• • 70 execute authorization process
• If it is determined that the card is not authorized, the method proceeds to410 where a decline message is generated and transmitted to the point of sale device, card reader system, or other suitable systems. Otherwise, the method proceeds to412 where a token is generated. In one exemplary embodiment, the token can be a number unrelated to the credit card data that is used to track the transaction and the credit card associated with the transaction so as to avoid storing and transmission of credit card data. In another exemplary embodiment,410 and412 can invoke an algorithm, such as the following exemplary pseudo code:
• • 80 if card not authorized, generate decline message
  • 90 if card authorized, generate token
  • 100 transmit message or token
    The method then proceeds to414.
• At414, the point of sale device associated with the token and the authorization request is determined, and the authorization request is transmitted to the associated point of sale device. In one exemplary embodiment, point of sale device can have a unique address identifier, and data packets or other suitable data formats can be generated and addressed to that point of sale device. In another exemplary embodiment,414 can invoke an algorithm, such as the following exemplary pseudo code:
• • 110 determine associated point of sale address
  • 120 address authorization request message and transmit
    The method then proceeds to416.
• At416, the token associated authorization request data is received at a point of sale device. In one exemplary embodiment, where only a token is generated, the token is received and the point of sale device proceeds with transaction preparation, such as using existing authorization processes that are normally performed using a credit card account number but where the token is used instead of the credit card account number. Likewise, where a predetermined amount has been authorized, the token can be received at the point of sale device and the transaction authorization information can be used to allow the transaction to be performed. In one exemplary embodiment,416 can invoke an algorithm, such as the following exemplary pseudo code:
• • 130 receive token, perform authorization processing
    The method then proceeds to418.
• At418, transaction authorization is requested. In one exemplary embodiment, a transaction authorization can be requested where an amount exceeds a predetermined transaction threshold that has already been authorized when the card was authorized, where a predetermined authorization processing method is performed, or using other suitable processes. In one exemplary embodiment,418 can invoke an algorithm, such as the following exemplary pseudo code:
• • 140 generate transaction authorization request
    The method then proceeds to420.
• At420, the token and transaction authorization request data is transmitted to the authorization gateway. In one exemplary embodiment, the token can be included in an authorization request response message in place of a credit card number so as to facilitate interfacing the transaction processing with the existing credit card authorization processes. In another exemplary embodiment,420 can invoke an algorithm, such as the following exemplary pseudo code:
• • 150 transmit token and transaction authorization request to authorization gateway
    The method then proceeds to422.
• At422, it is determined whether the transaction has been authorized by the transaction gateway, card issuing bank, credit card authorization network or other suitable system. If the transaction has not been authorized, the method proceeds to424 where a transaction refusal message is transmitted to the point of sale device, such as indicating that the credit card is stolen, that there are insufficient funds, or other suitable data. Otherwise, the method proceeds to426 where the transaction data is stored at the authorization gateway, including the token number which is associated with the credit card data at the authorization gateway in a secure location, the transaction data such as transaction amount, items purchased, stored, purchased from, point of sale device number, or other suitable transaction data. The method then proceeds to428 where the point of sale device is notified that the transaction has been authorized and can proceed. In one exemplary embodiment,422-428 can invoke an algorithm, such as the following exemplary pseudo code:
• • 160 transmit authorization request to card issuing bank over credit card authorization network
  • 170 if transaction not authorized generate denial message
  • 180 if transaction authorized, store transaction data generate approval message
  • 190 transmit message to point of sale terminal
• In operation,method400 can be used to perform authorization processing with a stand-alone card reader system in an existing point of sale device.Method400 may require the existing point of sale device to be updated to interface with token requests generated by the stand-alone card reader, and allows an authorization gateway to receive encrypted credit card data that has not been presented to or processed by the point of sale device, so as to insulate the credit card data from unauthorized access.
• FIG. 5 is a flow chart of a method500 for processing transaction data in accordance with an exemplary embodiment of the present invention. Method500 can be implemented as a series of algorithms on one or more processing platforms so as to convert the processing platforms from general purpose computers into special purpose processors, such as by using code similar to the disclosed pseudo code formethod400 as modified to accommodate the processes of method500.
• Method500 begins at502 where a transaction is initiated. In one exemplary embodiment, the transaction can be initiated by a point of sale device, such as one that has not been modified and where the operator is using a specific or special operator identification card that inserts a placeholder code into the transaction data. In another exemplary embodiment, standard point of sale software can be used that monitors for the presence of a credit card account number from a magnetic card stripe reader, so that the existing system can be used without modification by using a credit card magnetic stripe surrogate. This surrogate can be a single device that is used by all employees, can be an employee-specific device that is used to identify the employee that is handling the transaction, or can be other suitable devices. The method then proceeds to504.
• At504, the transaction data from the point of sale device is received. In one exemplary embodiment, the transaction authorization request can have a predetermined format, and can be buffered so as to identify the expected location of the placeholder code, which will be the location in the transaction authorization request format where the credit card account data would normally be. The method then proceeds to506.
• At506, a credit card is scanned at a stand-alone card reader. In one exemplary embodiment, the stand-alone card reader can be downstream from the point of sale device and can include encryption software and other systems that are used to ensure the security of the credit card data and to prevent the credit card data from being extracted or detected by unauthorized third parties. The credit card data is then encrypted and the method proceeds to508.
• At508, the placeholder code from the transaction authorization packet is extracted and the encrypted credit card data is inserted in its place. In one exemplary embodiment, encrypted credit card data can include additional data such as a token request or other suitable data. In another exemplary embodiment,508 can invoke an algorithm, such as the following exemplary pseudo code:
• • 10 read buffer {field}
  • 20 {field}=employee ID or other data?
    • 30 Yes—replace with encrypted card data, other data
    • 40 No—generate alert
  • 50 continue
    In this exemplary pseudo code, an alert is generated if the placeholder code is not an authorized employee ID or other authorized data, such as to generate an alert that an unauthorized person is attempting to submit a transaction for authorization. The method then proceeds to510.
• At510, a token request is generated. In one exemplary embodiment, the token request can include the encrypted credit card account data that has been read from the magnetic stripe and other suitable data, such as a point of sale device identifier or other suitable data. The method then proceeds to512.
• At512, transaction authorization is requested from an authorization gateway. In one exemplary embodiment, the authorization request can be transmitted to an authorization gateway, and the token request can be extracted and decrypted, such that the credit card validity and credit limit can be determined. Transaction authorization can be performed by transmitting a transaction authorization request to a card issuing bank, a credit card authorization network or other suitable systems, and receiving authorization approval or denial or in other suitable data. The method then proceeds to514.
• At514, it is determined whether authorization of the transaction has been received from a card issuing bank, a credit card authorization network or whether other suitable transaction authorization data has been received. If the transaction has not been authorized, the method proceeds to516 and an authorization denial code or other suitable data is transmitted to the point of sale device. Otherwise, the method proceeds to518 where the transaction data is stored at the authorization gateway, such as to allow the token identifier, the credit card data, the transaction data, or other suitable data to be obtained in the future, to allow the merchant or card issuing bank to access such data in the future if required but to prevent third parties from accessing the data behind the secure firewall at the authorization gateway, or for other suitable purposes. The method then proceeds to520.
• At520, a token is generated to identify the transaction, and the token is also stored with the transaction data. The method then proceeds to522.
• At522, the token is received and stored at the point of sale device in addition to the authorization approval. In this manner, the point of sale device can use an adjunct or stand-alone magnetic card stripe reader and can receive authorization for a transaction without accessing the magnetic card stripe data.
• In operation, method500 allows an existing point of sale device to be used with an adjunct or stand-alone magnetic card stripe reader, such as to allow the existing authorization process and programming to be used, but by further substituting a placeholder or employee identifier in place of the credit card account number that is stored in the magnetic card stripe data. In this manner, additional security can be provided at point of sale devices without requiring any retrofit or modification of the point of sale software.
• FIG. 6 is a flow chart of a method600 for processing authorization data in accordance with an exemplary embodiment of the present invention. Method600 can be implemented as one or more algorithms on one or more processing platforms, so as to transform this processing platform from general purpose processors into specific purpose processors, such as by using code similar to the disclosed pseudo code formethod400 as modified to accommodate the processes of method600.
• Method600 begins at602 where the magnetic stripe of a credit card is scanned and encrypted. In one exemplary embodiment, a stand-alone card reader system can be used to read and encrypt the magnetic stripe data from a credit card using a proprietary encryption process. The method then proceeds to604.
• At604, a token request is generated. In one exemplary embodiment, the token request can include the encrypted credit card account data that has been read from the magnetic stripe and other suitable data, such as a point of sale device identifier or other suitable data. The method then proceeds to606.
• At606, transaction authorization is requested. In one exemplary embodiment, a point of sale device can be interfaced with a stand-alone magnetic card stripe reader through a wireless interface, a data port (such as a RS232 port, a USB port, or other suitable ports), or in other suitable manners, and can receive the token request and process that request in addition to a transaction authorization request, such as by including the token request with the transaction authorization. The method proceeds to608.
• At608, it is determined whether the token request is acceptable, such as at an authorization gateway that receives the transaction authorization request and token request, and which extracts the token request and decrypts the credit card data from the token request. The authorization gateway can be behind the secure firewall such that decryption and extraction of the credit card data can be secured from third parties. If it is determined at608 that the token request is not acceptable, such as by checking the credit card number for proper form, against a watch list or by running a preliminary authorization request to a card issuing bank, or using other suitable processes, the method proceeds to610 where the point of sale device is notified that the authorization request has been denied. Otherwise, the method proceeds to612 where a token is generated. The method then proceeds to614. Likewise, if authorization is not performed prior to token generation, it is determined at614 whether the transaction amount has been authorized. If the transaction has not been authorized, the method proceeds to616 where the point of sale device is notified without the generation of a token. Otherwise, the method proceeds to618 where the token and authorization request is transmitted to the point of sale device from the authorization gateway. The method then proceeds to620.
• At620, the token and authorization response is received and stored at the point of sale device. In one exemplary embodiment, point of sale device can store a token number instead of the credit card data and associate that with the authorization transaction data, so as to allow the merchant to subsequently identify the token number if there are any questions about the transaction, and the token number can be used to identify the credit card that was presented for payment.
• In operation, method600 allows a point of sale device to be connected to an adjunct magnetic card stripe reader, and to receive encrypted credit card data from the magnetic card stripe reader, so as to replace the magnetic card stripe data with a token request that protects the magnetic card stripe data from ever being read from any point of sale device software or hardware. In this manner, commonly used methods that are used to extract credit card data at point of sale devices for unauthorized purposes are defeated and security of the credit card data is maintained.
• FIG. 7 is a diagram of asystem700 for a stand-alone card reader for use with a point of sale device in accordance with an exemplary embodiment of the present invention.System700 can be implemented in hardware or a combination of hardware and software and can be a stand-alone card reader system having hardware components such as a magnetic card stripe reader, data ports and a processor, and associated processing software.
• System700 includes magnetic card reader system702, which can be a standard or proprietary magnetic card stripe reader that detects data stored on the magnetic card stripe and stores it in a buffer for further processing. Likewise, magnetic card reader system702 can perform encryption on the card stripe data as it is extracted from the magnetic card stripe, such as in addition to encryption system704 or using encryption system704. In one exemplary embodiment, encryption system704 can be the operating system that is used to operate magnetic card reader system702 or other suitable systems.
• Encryption system704 generates encrypted data containing credit card data, such as a credit card account number. This encrypted data can be submitted totoken request generator710 and transmitted bygateway interface system706 to an authorization gateway over a suitable data transmission medium. Likewise, a token request can be submitted fromtoken request generator710 through point ofsale interface system708 to a point of sale device, such as a point of sale device that is connected to the magnetic card reader system702. In addition, encryption system704 can provide the encrypted card data to string detect and replace716. String detect and replace716 can receive authorization approval request data frombuffer714, which can receive the authorization request from point ofsale interface system708 and store the authorization request inbuffer714. String detect and replace716 can store the encrypted credit card data in a predetermined location ofbuffer714, can search buffer714 for a predetermined text string or alphanumeric string associated with the credit card data or can perform other suitable processes to replace placeholder data with encrypted credit card data.
• In addition, point ofsale interface system708 can receive an authorization request from an existing point of sale device, such as by allowing the user to use an identification card that takes the place of a credit card or other suitable devices or systems, and where the authorization request has been modified bysystem700 using the encrypted credit card data from encryption system704. In this exemplary embodiment, point ofsale interface system708 can store the authorization request inbuffer714 or in other suitable locations.
• System700 can include point ofsale update system712, which can interface with a point of sale device through point ofsale interface system708 or in other suitable manners to update software that controls the operation of a point of sale device. In this exemplary embodiment,gateway interface system706 can be used to receive point of sale updates based on point of sale identifiers associated withsystem700. Likewise, other suitable processes can be used.
• In operation,system700 provides different exemplary embodiments for providing an adjunct card reader to an existing point of sale device, such as by using the adjunct card reader separately from the point of sale device, using it downstream from the point of sale device, between the point of sale device and an authorization gateway, or by interfacing the adjunct card reader with the existing point of sale device through a data port on the existing point of sale device casing or system hardware interfaces. In these exemplary embodiments,system700 provides a flexible approach to updating existing point of sale devices to increase security of credit card data by removing known point of sale device configurations from being attacked by hackers.
• While certain exemplary embodiments have been described in detail and shown in the accompanying drawings, it is to be understood that such embodiments are merely illustrative of and not restrictive on the broad invention. It will thus be recognized to those skilled in the art that various modifications may be made to the illustrated and other embodiments of the invention described above, without departing from the broad inventive scope thereof. It will be understood, therefore, that the invention is not limited to the particular embodiments or arrangements disclosed, but is rather intended to cover any changes, adaptations or modifications which are within the scope and the spirit of the invention defined by the appended claims.

Claims (17)

1-16. (canceled)

17. A system for point-to-point encryption comprising:

a card reader system for reading unencrypted card data stored on a magnetic stripe of a card and for encrypting the card data immediately after the card data is read and prior to subsequent processing, the card reader system being contained in a first housing;

a point of sale device coupled to the card reader system, the point of sale device being contained in a second housing separate from the first housing, the point of sale device having a user interface for obtaining a transaction amount; and

a transaction request system for transmitting the transaction amount and the encrypted card data to an authorization gateway, wherein the unencrypted card data is prevented from being processed by the point of sale device.

18. The system ofclaim 17 wherein the card reader system comprises a token request system for compiling the encrypted card data into a token request for transmission to the authorization gateway.

19. The system ofclaim 17 wherein the point of sale device comprises a token handling system receiving a token from the authorization gateway, associating the token with transaction data and storing the token and the associated transaction data in a local memory.

20. The system ofclaim 17 wherein the point of sale device comprises a transaction permission system receiving a token from the authorization gateway, associating the token with transaction data and transmitting the token and the associated transaction data to the authorization gateway.

21. The system ofclaim 17 wherein the point of sale device is only coupled to the card reader system through the authorization gateway.

22. The system ofclaim 17 wherein the point of sale device is only coupled to the card reader system through a data port of the point of sale device.

23. The system ofclaim 17 wherein the card reader system is coupled to the authorization gateway, and data from the point of sale device is only transmitted to the authorization gateway by passing through the card reader system.

24. The system ofclaim 17 further comprising an authorization gateway that further comprises:

a token generation system for receiving a token request and the encrypted card data and for decrypting the encrypted card data; and

a transaction authorization system for transmitting the decrypted card data to a card-issuing bank with an authorization request and for receiving an authorization response;

wherein the token generation system generates a token based on the authorization response.

25. A method for point-to-point encryption comprising:

reading unencrypted card data stored on a magnetic stripe of a card at a card reader system contained in a first housing;

encrypting the card data at the card reader system immediately after the card data is read and prior to subsequent processing;

obtaining a transaction amount from a point of sale device contained in a second housing separate from the first housing;

transmitting the transaction amount and the encrypted card data to an authorization gateway; and

preventing the unencrypted card data from being processed by the point of sale device.

26. The method ofclaim 25 comprising compiling the encrypted card data into a token request for transmission to the authorization gateway at the card reader system.

27. The method ofclaim 25 comprising:

receiving a token from the authorization gateway;

associating the token with transaction data; and

storing the token and the associated transaction data in a local memory.

28. The method ofclaim 25 comprising:

receiving a token from the authorization gateway;

associating the token with transaction data; and

transmitting the token and the associated transaction data to the authorization gateway.

29. The method ofclaim 25 comprising coupling the point of sale device to the authorization gateway only through the card reader system.

30. The method ofclaim 25 comprising coupling the point of sale device to the card reader system only through a data port of the point of sale device.

31. The method ofclaim 25 wherein data from the point of sale device is only transmitted to the authorization gateway by passing through the card reader system.

32. The method ofclaim 25 further comprising:

receiving a token request and the encrypted card data at the authorization gateway;

decrypting the encrypted card data;

transmitting the decrypted card data to a card-issuing bank with an authorization request;

receiving an authorization response; and generating a token based on the authorization response.

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