System and method for secure verification of electronic transactions

A system for processing a personal identification number (PIN), comprising:

• an encryption algorithm module provided at an owning institution processor, the encryption algorithm module configured to:
• encrypt a clear PIN input to generate an owning institution encrypted PIN;
• and
• translate the owning institution encrypted PIN using a shared encryption key to generate a first encrypted PIN;
• a one-way hash algorithm module provided at the owning institution processor and configured to hash the first encrypted PIN and to generate a first hashed and encrypted PIN in response to the clear PIN being securely encrypted, and the owning institution encrypted PIN being securely translated using the shared encryption key;
• storage provided at a third party processor for storing the first hashed and encrypted PIN,
• wherein the first hashed and encrypted PIN remains hashed and encrypted while stored on the third party processor;
• a PIN translator module provided at the third party processor for translating a second encrypted PIN into a third encrypted PIN using the shared encryption key,
• wherein the third encrypted PIN is in a form usable by the third party processor, and
• wherein the encrypted PIN translation module is configured to prevent the third party processor from accessing the encryption algorithm used to generate the owning institution encrypted PIN;
• a one-way hash algorithm module provided at the third party processor for hashing the third encrypted PIN to generate a second hashed and encrypted PIN in response to secure translation of the second encrypted PIN into a third encrypted PIN using the shared encryption key,
• wherein the one-way hash algorithm is contained within the one-way hash algorithm module, and
• wherein the hashing is performed at the third party processor by the one-way hash algorithm module;
• and
• a comparison module provided at the third party processor for comparing the second hashed and encrypted PIN to the stored first hashed and encrypted PIN to determine when the second hashed and encrypted PIN is generated from the same clear PIN input as that of the first hashed and encrypted PIN.

A non-transitory computer readable medium storing computer code that when loaded into one or more data processors adapts the processors to provide, when executed, a method of processing a personal identification number (PIN), the non-transitory computer readable medium comprising:

• code for encrypting at a owning institution processor a clear PIN input using an encryption algorithm to generate an owning institution encrypted PIN;
• code for translating at the owning institution processor the owning institution encrypted PIN using a shared encryption key to generate a first encrypted PIN;
• code for hashing at the owning institution processor the first encrypted PIN using a one-way hash algorithm to generate a first hashed and encrypted PIN in response to the clear PIN being securely encrypted, and the owning institution encrypted PIN being securely translated using the shared encryption key;
• code for storing at a third party processor the first hashed and encrypted PIN,
• wherein the first hashed and encrypted PIN remains hashed and encrypted while on the third party processor;
• code for receiving at the third party processor a second encrypted PIN generated from a clear PIN input;
• code for translating at the third party processor the second encrypted PIN into a third encrypted PIN using an encrypted PIN translation module including the shared encryption key,
• wherein the third encrypted PIN is in a form usable by the third party processor, and
• wherein the encrypted PIN translation module is configured to prevent the third party processor from accessing the encryption algorithm used to generate the owning institution encrypted PIN;
• code for hashing at the third party processor the third encrypted PIN using a one-way hash algorithm module to generate a second hashed and encrypted PIN in response to secure translation of the second encrypted PIN into a third encrypted PIN using the shared encryption key,
• wherein the one-way hash algorithm is contained within the one-way hash algorithm module, and
• wherein the hashing is performed at the third party processor by the one-way hash algorithm module;
• and
• code for comparing at the third party processor the second hashed and encrypted PIN to the stored first hashed and encrypted PIN to determine when the second hashed and encrypted PIN is generated from the same clear PIN input as that of the first hashed and encrypted PIN.