Abstract: A procedure is disclosed for initializing with security and integrity a large number of terminals in an EFT/POS network with cryptographic variables. Each terminal in the network is provided with a cryptographic facility which performs the necessary cryptographic functions. A key distribution center is established, and a public and secret key pair is generated for the key distribution center. Each terminal in the network is provided with a terminal identification known to the key distribution center, the public key of the key distribution center is stored in the cryptographic facility of each terminal. A terminal initializer is designated for each terminal, and the terminal initializer for each terminal is notified of two expiration times for the purposes of registering the terminal's cryptovariable with the key distribution center. The cryptovariable is generated by the terminal using its cryptographic facility.