Plain Text PIN

Plain Text PIN is a method of verifying a cardholder's Personal Identification Number (PIN) during a transaction, where the PIN is sent directly to the card in an unencrypted format. This verification method is typically utilized in scenarios where the card itself cannot support more secure methods, such as Offline Enciphered PIN, which involves encrypting the PIN before it is sent to the card.

The Plain Text PIN process is mainly associated with cards operating under the Integrated Circuit Card (ICC) entry mode. In this mode, the PIN is processed by the card terminal and sent to the card without any form of encryption, which makes it a less secure option compared to encrypted methods. The primary reason for using Plain Text PIN is compatibility, ensuring that transactions can still be processed even when advanced encryption technologies are not supported by the card.

Despite its convenience and compatibility benefits, the Plain Text PIN method poses increased security risks. Since the PIN is transmitted in an unencrypted form, it could potentially be intercepted or compromised if adequate security measures are not in place. As such, this method is generally used as a last resort when more secure PIN verification processes are not feasible due to hardware limitations.

Organizations and systems that rely on Plain Text PIN must implement stringent security protocols elsewhere in their transaction processing systems to mitigate the inherent risks associated with this method. This might include enhanced monitoring for fraudulent activity and secure handling of transaction data at all other stages of the payment process.