Patent ID: 8620824

Claim:
A system comprising a merchant portable payment device configured for encrypting a customer personal identification number (PIN), the system comprising: the merchant portable payment device including a processor and memory configured to: receive a payment application including a merchant password on the merchant portable payment device; receive a first key from a payment processor in communication with the merchant portable payment device via a network; wherein the first key is received by the merchant portable payment device as a protected key; wherein the protected key has been cryptographically camouflaged by the payment processor using the merchant password; store the protected first key on the merchant portable payment device; receive a customer PIN inputted to the merchant portable payment device; receive the merchant password inputted to the merchant portable device; decamouflage the protected key using the password to provide the first key; encrypt the customer PIN on the merchant portable payment device using the first key; and send the encrypted PIN using the merchant portable payment device to the payment processor to process a payment authorization message.