Patent ID: 7376629

Claim:
A transaction system for performing secure transactions over a communication network comprising: a merchant server system including a computer processor and associated memory, said merchant server system offering items for sale; a buyer system including a computer processor and associated memory, said buyer system being selectively coupled to said merchant server system over said communication network to initiate a transaction, wherein, during said transaction, said buyer system selects one or more of said items for purchase; a security server system distinct from said merchant server system and including a computer processor and associated memory and an encryption device, said security server system receiving buyer information from said buyer system, encrypting said buyer information in an encryption key that prevents said merchant server system from decrypting said buyer information, and transferring said encrypted buyer information to said merchant server system; and a payment processor server system distinct form the security server system and including a computer processor and associated memory, said payment processor server system being selectively coupled to said merchant server system, wherein said merchant server system transmits at least a payment portion of said encrypted buyer information to said payment processor server system for processing during said transaction wherein said merchant server system cannot decrypt said encrypted payment information and said payment processor server system can decrypt said encrypted payment information; and wherein said payment processor server decrypts said encrypted payment information and using said decrypted payment information, determines if said transaction is authorized or not, and communicates said determination to said merchant server system.