Which cryptographic techniques are in banking and debit cards?

Answer 1

Cryptography is a method of transforming data to protect information in enhancing computer security (National Institute of Standards and Technology, 1995). According to Pondent (2012), derived unique key per transaction encryption method uses different keys for each transaction. Unique keys per transaction are derived from a master key on the encrypting device. The advantage of this method is that even if someone cracked the code for a single transaction, he cannot be able to decrypt all transactions at a go.

The triple data encryption encrypts the card holder data a number of times in the keypad. This makes it difficult to crack the data by incorporating a level of encryption, a level of decryption and another level of encryption. Business traders who accept PIN-based debit card transactions must use PIN pads that are compatible to the triple data encryption standard and the triple data encryption standard keys.

End-to-end encryption transforms the input data and protects it as it passes through the system. The debit card PIN data is encrypted as it goes through the systems in the flowing process and at the information storage location after processing. It has five encryption areas in the process of the transaction which are the swipe location, network gate authorization, the location in the processor network and the back-end data storage that enhances reporting and servicing and the authorization point that validates the transaction. It provides data security in all the processes.