Patent ID: 7231373

Claim:
A transaction processing method carried out by a customer terminal, a merchant server, and an account server, wherein, the merchant server transmits an instruction to the account server upon receipt of a transaction request confirmation; the account server communicates directly with the customer terminal for customer verification and payment processing; wherein the verification includes physical connection of a physical security device in the customer terminal, and the customer terminal reading security data from the security device; wherein the customer terminal generates a customer prompt for insertion of the security device using a program downloaded from the account server; wherein the customer terminal transmits the security data to the account server for customer recognition and verification; wherein the security data is hashed, the hash is transmitted, the account server independently generates a hash with the same algorithm based on a local database record of the security data, and verifies the customer if the hashes match; wherein the security data includes a software key, and the method comprises the further steps of both the customer terminal and the account server synchronously changing the software key; and wherein the software key is updated after at least some transactions involving the customer terminal.