Card reader for use with web based transactions

A system for establishing a secure connection between a card reader and a server, the system comprising:

• the card reader comprising:
• a read head configured to read data card information from a data card, the data card information comprising an intrinsic magnetic characteristic and recorded data on the data card;
• and
• a processor coupled to the read head, the processor configured to:
• receive a first challenge request;
• generate a response to the first challenge request using a first encryption key;
• send the response to the first challenge request;
• send a second challenge request;
• receive an encrypted response to the second challenge request;
• verify the encrypted response to the second challenge request;
• generate, if the encrypted response is verified, a magnetic fingerprint based on the intrinsic magnetic characteristic;
• and
• send the magnetic fingerprint.

A method for establishing a secure connection between a card reader and a server, the method comprising:

• receiving, at the server, a challenge request generated by the card reader;
• decrypting, at the server, the challenge request using a first encryption key;
• generating, at the server, a response to the challenge request of the card reader using a second encryption key;
• sending, from the server, the response to the challenge request;
• receiving, at the server, an encrypted magnetic fingerprint;
• decrypting, at the server, the encrypted magnetic fingerprint;
• generating, at the server, a score indicative of a degree of correlation between the magnetic fingerprint and a reference magnetic fingerprint;
• and
• sending, from the server, the score.