04755940 is referenced by 177 patents and cites 20 patents.

An electronic funds transfer system (EFT) is described in which retail terminals located in stores are connected through a public switched telecommunication system to card issuing agencies data processing centers. Users of the system are issued with intelligent secure bank cards, which include a microprocessor, ROS and RAM stores. The POS includes a personal key (KP) and an account number (PAN) stored on the card when the issuer issues it to the user. Users also have a personal identity number (PIN) which is stored or remembered separately.

A transaction is initiated at a retail terminal when a card is inserted in an EFT module connected to the terminal. A request message including the PAN and a session key (KS) is transmitted to the issuers data processing center. The issuer generates an authentication parameter (TAP) based upon its stored version of KP and PIN and a time variant parameter received from the terminal. The TAP is then returned to the terminal in a response message, and based upon an imputed PIN, partial processing of the input PIN and KP on the card a derived TAP is compared with the received TAP in the terminal. A correct comparison indicating that the entered PIN is valid.

The request message includes the PAN encoded under the KS and KS encoded under a cross-domain key. Message authentication codes (MAC) are attached to each message and the correct reception and regeneration of a MAC on a message including a term encoded under KS indicates that the received KS is valid and that the message originated at a valid terminal or card.

Title
Transaction security system
Application Number
649442
Publication Number
4755940
Application Date
January 6, 1987
Publication Date
July 5, 1988
Inventor
Jonathan Oseas
Hurley
NY, US
Carl H Meyer
Kingston
NY, US
Stephen M Matyas
Kingston
NY, US
Richard E Lennon
Saugerties
NY, US
Christopher J Holloway
London
GB
Bruno Brachtl
Herrenberg
DE
Agent
John E Hoel
Frederick D Poag
Edwin Lester
Assignee
International Business Machines Corporation
NY, US
IPC
G07F 7/10
H04L 9/02
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