Some cryptographic principles of authentication in electronic funds transfer systems

Abstract

One essential requirement of an Electronic Funds Transfer (EFT) system is that institutions must be able to join together in a common EFT network such that a member of one institution can initiate transactions at entry points in the domain of another institution. The use of such a network is defined as interchange. Cryptographic implementations are developed for such a network in such a way as to keep personal verification and message authentication processes at different institutions completely separate. This is accomplished through the combined use of user-remembered personal identification numbers (PINs), secret system keys, and intelligent secure (bank) cards on which are recorded secret personal cryptographic keys.