
The HSM’s physical and logical security keep the key secure during both storage and transit. Performing key injection using a hardware security module (HSM) ensures that knowledge of the BDK is kept to an absolute minimum. Key loading devices are used by merchants and POS manufacturers to inject DUKPT keys. Instead of storing a unique key for every single device, organizations can compliantly store one base derivation key for use with hundreds of thousands of devices.

While several methods of key management allow for unique keys per transaction, DUKPT saves organizations time and money while increasing security by significantly reducing the amount of effort required for key management. Furthermore, each transaction key is erased after use.Īccording to TR-39 objectives, which are maintained by ANSI’s X9 committee, organizations are required to have a unique key for every device. Each key cannot lead back to the original key upon which it was based. What is DUKPT?ĭUKPT is a key generation method defined by the American National Standards Institute, a regulatory standard responsible for specifying the requirements for key management and the secure processing of cardholder data throughout payment transactions.ĭUKPT safeguards data, such as Personal Identification Numbers (PIN) or cardholder Primary Account Numbers (PAN), by providing unique encryption keys for every transaction. To do so, they use key management technologies such as Derived Unique Key Per Transaction, or DUKPT. With countless electronic payment transactions occurring every day, merchants need ways to ensure that sensitive data stays safe from malicious individuals. When customers use a Point of Sale terminal to make purchases, they expect their information to be kept secure. DUKPT is one of many encryption techniques but plays a significant role in an end to end enterprise data encryption solutions.


For more detailed information, consult the American National Standards Institute’s ANS X9.24-1:2009 publication. This document provides a high-level overview of the DUKPT process, outlining how derived keys are made and what they are used for. Tally ERP v9.6.Derived Unique Key Per Transaction (DUKPT) is a type of encryption key management used for PIN encryption and safeguarding cardholder data.

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