Glossary

PIN Pad

A PIN Block is a secure and encrypted block of data used in the processing of Personal Identification Numbers (PINs) during electronic financial transactions. It is designed to protect the cardholder’s PIN while it is being transmitted through various networks to the card issuer for verification.

The structure of a PIN block includes several key elements:

The PIN block is constructed using a specific format that outlines how these elements are combined and encrypted. The format used must conform to industry standards, such as ISO 9564, which dictate several methods for creating a PIN block. The choice of format affects how the PIN data is padded and encrypted to ensure that it cannot be deciphered during transmission if intercepted.

Once the PIN block is created, it is transmitted securely from the point of transaction (e.g., an ATM or point-of-sale terminal) to the banking network. The issuer then uses a decryption key to unlock the PIN block, extract the PIN, and verify it against the PIN associated with the cardholder's account. This process is critical for maintaining the integrity and security of PIN-based transactions, ensuring that only authorized users can access their accounts.

The use of a PIN block is a fundamental part of the security infrastructure in banking and financial services, protecting sensitive PIN data against potential threats and unauthorized access during transaction processing.

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