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Zero-Knowledge Encryption: How Kudos Protects Your Credit Card Data
September 27, 2026
Your Financial Security Is Our Top Priority
At Kudos, we're committed to building tools that help you get more from your credit cards, and to protecting the sensitive information that makes those tools work. That's why the card numbers in your Kudos Wallet are protected with zero-knowledge encryption, the same security model used by leading password managers.
Here's what that means, how it works, and why it matters. For our full approach to protecting your data, see our Privacy Policy.
What Is Zero-Knowledge Encryption?
Zero-knowledge encryption (ZKE) is a security model in which your credit card information is encrypted and decrypted only on your own devices, never on our servers. This means:
- Your card details are never stored in readable form on our systems
- Encryption and decryption happen only on your device
- Kudos doesn't have the keys to decrypt your card information
- Each encryption key is unique to you and works only for your data
Why Zero-Knowledge Encryption Matters for Your Financial Data
In traditional systems, companies decrypt your sensitive information on their servers to process it. That creates a potential vulnerability: if those systems are compromised, attackers might be able to access the data.
Zero-knowledge encryption is designed to close that gap. In the unlikely event of a security breach, your credit card numbers stay encrypted because:
- We never store plaintext (unencrypted) card data
- We don't hold the keys to decrypt your data
- Each user has their own unique encryption key
How Zero-Knowledge Encryption Works at Kudos
Here's a simplified look at how it works:
1. Secret Key Generation
When you first use Kudos, a unique secret encryption key is generated directly on your device. This key never leaves your device in a form we can read.
2. Card Encryption
When you add a credit card to your Kudos Wallet, your card details are encrypted with your secret key on your device before being sent to our servers. Your unencrypted card information never reaches our systems.
3. Secure Storage
We store only the encrypted version of your card data. Our engineers and administrators can't see your actual card numbers.
4. Cross-Device Security
To let you use your cards across multiple devices, Kudos uses a secure key exchange:
- When you log in to Kudos on a new device, your new device requests the key from one of your existing devices
- The transfer is encrypted so only your devices can read the key
- If you can't access your existing devices, our recovery process lets you regain access securely
5. On-Device Decryption Only
Whenever Kudos uses your card information, for example during autofill at checkout, decryption happens only on your device. Unencrypted card numbers are never sent back to our servers.
6. Additional Protection Layers
Unique salts for each user and 650,000 key-derivation iterations add further protection, so your encrypted data stays protected even in the unlikely event of a breach.
Industry-Standard Encryption Protects Your Financial Information
Zero-knowledge encryption is used by leading companies in password management, cloud storage, and end-to-end encrypted messaging. Kudos applies the same model to your credit card information, using widely trusted cryptographic algorithms:
- AES-GCM (Advanced Encryption Standard): 256-bit encryption, the standard approved by the U.S. government for protecting classified information
- PBKDF2: used with 650,000 iterations to create secure keys, the same approach used by leading password managers
- SHA-256: a cryptographic hash function that creates unique digital fingerprints of data
- Public key and private key cryptography: the same technology that secures HTTPS websites, including online banking
Beyond Encryption
Zero-knowledge encryption is one part of how Kudos protects your data. Our security controls are validated through SOC 2 (Type 1) certification, our systems are monitored by external security auditors through Drata, and our platform is hosted on Amazon Web Services (AWS). You can request our security report by emailing support@joinkudos.com.
Secure Financial Tools Without Compromise
At Kudos, we believe you shouldn't have to choose between great financial tools and strong security. With zero-knowledge encryption, you can use Kudos knowing your card numbers are encrypted on your device and can't be read by us.
We're committed to continually improving our security to keep your financial information safe. Zero-knowledge encryption is one more way we work to earn and keep your trust.
For a quick summary you can share, see our help article: How does Kudos protect my credit card numbers?
Frequently Asked Questions About Our Credit Card Security
Is zero-knowledge encryption different from regular encryption?
Yes. Regular encryption protects your data in transit and at rest, but the company can still decrypt it on its servers. With zero-knowledge encryption, Kudos can't decrypt your credit card data. Only your devices can. For how we handle all of your data, see our Privacy Policy.
Will this slow down Kudos?
No. Encryption runs in the background and doesn't affect autofill or checkout speed.
What happens if I lose all my devices?
Kudos has a secure account recovery process that lets you regain access to your encrypted data while keeping the zero-knowledge protections in place. If you need help, contact support@joinkudos.com.
Is this the same technology used by password managers?
Yes. Kudos uses the same security principles trusted by leading password managers, applied to your credit card data.
Does Kudos have a security certification?
Yes. Kudos' security controls are validated through SOC 2 (Type 1) certification, with ongoing monitoring by external auditors through Drata.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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