PED: PIN Entry Device

A PIN Entry Device (PED) is a critical component in the realm of secure payment transactions, particularly those involving Chip & PIN cards. This device allows customers to securely enter their Personal Identification Number (PIN) during a transaction, providing an essential layer of security.

In a typical Chip & PIN transaction, the customer inserts their card into the PED, which is equipped with a chip reader. The chip on the card communicates with the PED to authenticate the card, and the customer then enters their PIN on the device's keypad. The PED encrypts this PIN before sending it over secure networks to the cardholder's bank for verification. This process ensures that the transaction is authorized by the actual cardholder, significantly reducing the risk of fraud.

PEDs are designed to meet rigorous security standards set by the payment industry, such as those specified in the Payment Card Industry Data Security Standard (PCI-DSS). These standards mandate robust physical and software security measures to protect sensitive cardholder data during the transaction process.

Features of PEDs typically include:

PEDs are commonly used in retail settings, ATMs, and anywhere else Chip & PIN transactions occur, contributing significantly to the secure and efficient processing of electronic payments. By enabling the secure entry and encryption of PINs, PEDs play a vital role in the infrastructure of modern electronic payment systems.