System and method for point-to-point encryption with adjunct terminal

1. 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.

2. The system of claim 1 wherein the point of sale device comprises a token handling system for receiving the token from the authorization gateway, associating the token with transaction data and storing the token and the associated transaction data in a local memory.

3. The system of claim 1 wherein the point of sale device comprises a transaction permission system for receiving the token from the authorization gateway, associating the token with transaction data and transmitting the token and the associated transaction data to the authorization gateway.

4. The system of claim 1 wherein the point of sale device is only coupled to the card reader system through the authorization gateway.

5. The system of claim 1 wherein the point of sale device is only coupled to the card reader system through a data port of the point of sale device.

6. The system of claim 1 wherein the card reader system is coupled to the authorization gateway, and data from the point of sale device is only transmitted to the authorization gateway by passing through the card reader system.

7. The system of claim 1 wherein the transaction request system is for transmitting the transaction amount and the encrypted card data to an authorization gateway without decrypting the encrypted card data.

8. The system of claim 1 wherein the transaction request system is for encrypting the transaction amount and the encrypted card data for transmission to an authorization gateway without decrypting the encrypted card data.

9. A method for point-to-point encryption comprising:

reading unencrypted card data stored on a magnetic stripe of a card at a card reader system contained in a first housing;

encrypting the card data at the card reader system using a network key;

obtaining a transaction amount from a point of sale device contained in a second housing separate from the first housing;

transmitting the transaction amount and the encrypted card data to an authorization gateway without decrypting the encrypted card data prior to transmission;

preventing the unencrypted card data from being processed by the point of sale device;

compiling the encrypted card data into a token request with unencrypted token request data for transmission to the authorization gateway at the card reader system;

receiving the token request and the encrypted card data at the authorization gateway;

decrypting the encrypted card data;

transmitting the decrypted card data to a card-issuing bank with an authorization request;

receiving an authorization response; and

generating a token based on the authorization response.

10. The method of claim 9 comprising:

receiving the token from the authorization gateway;

associating the token with transaction data; and

storing the token and the associated transaction data in a local memory.

11. The method of claim 9 comprising:

receiving the token from the authorization gateway;

associating the token with transaction data; and

transmitting the token and the associated transaction data to the authorization gateway.

12. The method of claim 9 comprising coupling the point of sale device to the authorization gateway only through the card reader system.

13. The method of claim 9 comprising coupling the point of sale device to the card reader system only through a data port of the point of sale device.

14. The method of claim 9 wherein data from the point of sale device is only transmitted to the authorization gateway by passing through the card reader system.

15. A method for point-to-point encryption comprising:

reading unencrypted card data stored on a magnetic stripe of a card at a card reader system;

encrypting the card data at the card reader system using a network key;

obtaining a transaction amount from a point of sale device;

transmitting the transaction amount and the encrypted card data to an authorization gateway without decrypting the encrypted card data;

compiling the encrypted card data into a token request with unencrypted token request data for transmission to the authorization gateway at the card reader system;

receiving the token request and the encrypted card data at the authorization gateway;

decrypting the encrypted card data;

transmitting the decrypted card data to a card-issuing bank with an authorization request;

receiving an authorization response; and

generating a token based on the authorization response.

16. The method of claim 15 comprising compiling the encrypted card data into the token request for transmission to the authorization gateway at the card reader system.