Online PIN

Online PIN is a security protocol used in electronic payment systems where the Personal Identification Number (PIN) entered by a cardholder is sent online to the card issuer for verification. This process is an integral part of the transaction verification for debit and some credit card transactions, particularly when the authenticity of the cardholder needs to be established securely.

In an Online PIN transaction, when the cardholder enters their PIN at the point-of-sale (POS) terminal or ATM, the PIN is first encrypted within the terminal. This encryption is crucial for maintaining the security and integrity of the PIN during transmission over networks to the card issuer’s system. The issuer then checks the encrypted PIN against its records to verify the cardholder's identity.

The use of Online PIN is conditioned upon the compatibility of the card scheme (payment method) and the specific card itself. Not all cards or payment networks support Online PIN; some may use alternative methods like signature verification or offline PIN verification.

Key features and benefits of Online PIN include:

However, the requirement for real-time connectivity and the need for encryption at the point of entry means that the infrastructure for Online PIN must be robust to handle the security demands. This system is especially common in regions with advanced electronic payment infrastructure, where security and immediate transaction verification are prioritized.