Patent ID: 8346671

Claim:
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 using a network key, 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; a transaction request system coupled to the card reader 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; and an authorization gateway that comprises: a token generation system for receiving an unencrypted 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, 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, wherein the token request is unencrypted.