Patent ID: 7350695

Claim:
A system for implementing personal identification number (PIN)-based data transfer activities, comprising: a host system; and a PIN generator application and encryption engine executing on the host system, the PIN generator application and the encryption engine implementing a method, comprising: generating an instance of a PIN by the PIN generator application in response to a request by a holder of an instrument to create the PIN, the PIN used in transferring a data value to the instrument, the data value including at least one of a value of products or services, and a function to be performed via the instrument, the generating comprising: receiving an instrument identifier and the data value from the holder of the instrument; retrieving a transfer system key and a seed value associated with the instrument from an account record associated with the instrument identifier; and encrypting the instrument identifier, the data value, the transfer system key, and the seed value to form the instance of the PIN; and providing the instance of the PIN to the holder of the instrument; wherein the data value is encoded on the instrument in response to: providing the instrument to a transfer system associated with the transfer system key; providing the PIN to the transfer system by the holder of the instrument; decrypting the PIN; and validating the instrument identifier, the transfer system key, and the seed value.