What Offline Enciphered PIN is
Offline Enciphered PIN is a cardholder verification method (CVM) used with an EMV chip card. The customer enters a PIN on the payment terminal's PIN pad. The terminal encrypts the PIN using the chip's public key and sends it to the chip, which decrypts and validates it.
Here, "offline" describes where the PIN is checked: by the chip, rather than by the card issuer. It does not necessarily mean the entire payment is processed offline. A terminal can use Offline PIN even when it is configured for online-only payment processing.
Offline Enciphered PIN changes where the chip checks a PIN, not what you pay to process a card.
How it differs from other PIN checks
With Offline Enciphered PIN, the chip checks the PIN after receiving it in encrypted form from the terminal. With Online PIN, the terminal encrypts the PIN and sends it to the issuer for verification. The difference is where the PIN check happens, not whether the customer enters a PIN.
Offline Enciphered PIN is one specific CVM, not a synonym for every PIN check. Visa's U.S. implementation guide says a device supporting Offline Enciphered PIN must also support Offline Plaintext PIN. Mastercard's mobile acceptance guidance says Offline PIN is not supported for contactless transactions.
What it means for a U.S. business
Visa's U.S. implementation guide labels Offline PIN as not applicable to the U.S. market. That makes this term more likely to appear in EMV or terminal documentation than in your day-to-day payment operations. The method is not a processing rate or a separate merchant fee.
The card-network guides do not define a standard statement line for Offline Enciphered PIN. They also do not assign a fee to it. If a bill includes a PIN-related charge, do not assume it is a fee for this verification method; identify the exact line item and what service it covers.
What you can actually change
You cannot change where the card chip checks the PIN or use this method to lower processing rates. You can control whether your terminal and PIN-entry setup meet the applicable security requirements.
- Use a PIN-entry terminal certified to meet PCI PIN Transaction Security requirements.
- Do not capture PINs on a mobile device or other device that is not PCI PTS compliant.
- Keep test keys out of production devices and follow the required public-key management controls.
- If a statement has a PIN-related fee, match its exact description to the service being billed.
- Verify terminal certification. Confirm that every device accepting PINs meets PCI PIN Transaction Security requirements.
- Protect PIN entry. Keep PIN capture on compliant payment equipment, not a mobile device keypad or touchscreen.
- Identify PIN charges. Ask what service an exact PIN-related statement line covers before treating it as a fee for this method.
Frequently asked questions
Does Offline Enciphered PIN send the PIN to the issuer?
No. The terminal encrypts the PIN with the chip's public key and sends it to the card. The chip decrypts and checks it. Online PIN works differently: the PIN is sent to the issuer for verification.
Does Offline Enciphered PIN add a fee to my processing bill?
The method itself is not a processing fee, and card-network guides do not assign it a merchant charge or standard statement line. If you see a PIN-related charge, identify the exact line description and the service it covers.
Can customers use Offline Enciphered PIN for contactless payments?
Mastercard's mobile acceptance guidance says Offline PIN is not supported for contactless transactions. Offline Enciphered PIN is a specific chip-card verification method, and Visa's U.S. implementation guide labels Offline PIN not applicable to the U.S. market.