In a cryptographic module, a User Defined Function (UDF) facility is provided which provides users with the capability of defining and creating custom functions to meet their cryptographic processing needs. The cryptographic module is contained within a physically and logically secure environment and comprises a processing unit and memory connected to the processing unit. The memory includes code for translating User Defined Functions (UDFs) into a machine-readable form and at least one command for operating on the UDFs. The UDFs are loaded into and executed in the secure area of the cryptographic module without compromising the total security of the transaction security system.