I have been working on the payment side with RSA and AES encryption which I got a fairly well technical understanding of encrypting credit card details.
Recently, We adopted a new chip and pin device which supports DUKPT and combined with 3DES seems to be stronger than RSA and AES.
DUKPT is something completely new for me and what I understood are: - the server stores Master Key (KSN) not sharable - the chip and pin device stores 2 keys of 8 bytes each, but it is also requiring the KSN.
Does the device really need the KSN to get generate the IPEk or there is a misunderstanding from my interpretation?
NOTE: the device will work on offline mode and any communication required with the server to encrypted the data will no longer be possible. Is it ok for DUKPT?