Most certainly I can do that.  It may take some negotiations but there
must be a processor who has a package to support a physical card
machine with an online going to the same account.  It is likely that
talks with my client and her vendor will yield a result.  Its the path
I'm going to follow.

I'm still interested in the academic question:
  Is data encrypted with a public key safe if the private key is not on
the server?

I figure that the answer must be yes or there would be little use of
the various private/public encryption methods used all over the net.
Although the question "sure, but why would you want to?" is a damn good
one to ask myself if I get into this zone again.


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