PIN pad

A PIN pad or PIN entry device is an electronic device used in a debit, credit or smart card-based transaction to accept and encrypt the cardholder's personal identification number (PIN). PIN pads are normally used with automated teller machines and integrated point of sale devices in which an electronic cash register is responsible for taking the sale amount and initiating/handling the transaction. The PIN pad is required so that the customer card can be accessed (in the case of chip cards) and the PIN can be securely entered and encrypted before it is sent to the transaction manager of the switch or the bank. In some cases, with chip cards, the PIN is only transferred from the PIN pad to the chip (within the PIN pad itself) and it is verified by the chip card. In this case the PIN does not need to be sent to the bank or card scheme for verification. (This is known as "offline PIN verification".)