Patent ID: 7639116

Claim:
A method comprising: receiving, at a Radio Frequency (RF) reader, a reader authentication signal and an encrypted transponder device authentication signal from an RF transponder device, wherein the RF reader communicates with a Point of Sale (POS) device that, in a first state, utilizes a first account format for processing a first type of transaction request under a business as usual standard, and wherein the POS device, in a second state, utilizes a third party server for processing a second type of transaction request in a second account format; encrypting the reader authentication signal with a reader encryption key to facilitate authentication of the RF reader; decrypting the encrypted transponder device authentication signal with a transponder device encryption key, wherein the transponder device encryption key corresponds to a transponder device identification code received from the RF transponder device, and wherein the decrypting the encrypted transponder device authentication signal facilitates authentication of the RF transponder device; receiving, at the RF reader, encrypted account data from the RF transponder device in response to the authentication of the RF reader and the authentication of the RF transponder device, wherein the encrypted account data is stored on the RF transponder device in accordance with the second account format; decrypting the encrypted account data with a transponder device account data key to create decrypted account data in the second account format; converting at least a portion of the decrypted account data in the second account format into a POS account code in the first account format; and forwarding the POS account code in the first account format to the POS device in the first state for processing under the business as usual standard without using the third party server.