Patent ID: 8413896

Claim:
A computerized method comprising: reading, by a POS device, an account identifier from a transaction device for use in a transaction; receiving, by said POS device and via a PIN entry device, a personal identification number (PIN) associated with said transaction device; encrypting, by said POS device, said PIN and at least one of a merchant identifier, a store identifier, and a point-of-sale device identifier to create a first encrypted object; appending, by said POS device, said PIN, said account identifier and said first encrypted object; encrypting, by said POS device, said appended account identifier and first encrypted object with a merchant password as an encryption key, yielding a second encrypted object; creating, by said POS device, an encrypted authorization request comprising said second encrypted object; transmitting, by said POS device, said encrypted authorization request via an open network to a remote computing system for authorization of a transaction; receiving, by said POS device and via said open network, a transaction authorization.