[ic] Problem with PGP! Can someone please help?

[interchange-users@icdevgroup.org (Soheil Shaghaghi)]

Hello list,
I have been working on this issue for so long, and I am getting very
frustrated :)
I am hosting IC 4.8.5 on a FreeBSD machine.
I installed a fresh copy of version 4.8.4, and last night upgraded to 4.8.5
and still have the same problem.
The IC is on a shared hosting environment, running 4 sites.
Problem:
The credit card field is either empty or it says NEED ENCRYPTION ENABLED.
I have followed all the directions to the point. Basically here is what I
did:
-After creating a shop, the user created a key.

-I uploaded the key using the interchange user to the server

-To import the key:
su interch -c 'gpg --import /home/interch/publickey.asc'
gpg --update-trustdb

-Restart Interchange:
su interch -c '/usr/local/interchange/bin/interchange -r'gpg

-Then I added the Key to the admin under prefrences, and applied changes.

-I restarted IC again to make sure the changes take effect

It still says "NEED ENCRYPTION ENABLED"

-Here is what's in the variable.txt file:
PGP_KEY	369FFC78	Encryption
ENCRYPTOR		Encryption

Can anyone please help me figure out what the problem is?
Thanks so much,
Soheil