A cashless gaming system and method of securely transferring a monetary value. When "cashing-out" of a first terminal of the system, the monetary value is encrypted with an encryption key and an encryption algorithm to produce an encrypted monetary value. A transaction code is associated with encryption key and the monetary value. The transaction code and encrypted monetary value are written to a transportable medium that is issued by the first terminal. The transaction code and associated encryption key are stored in a key repository database. The transaction code and monetary value are stored in an accounting database which is securely separate from the key repository database. The transportable medium is taken to a second terminal where the encrypted monetary value and transaction code are read. The encryption key associated with the transaction code is retrieved and used to decrypt the encrypted monetary value. The monetary value is then credited to the second terminal.