Point-to-point encryption definition
Point-to-point encryption (P2PE) is the standard banks and payment providers use to secure payment card data. It’s enabled from the moment you swipe your card or enter your details until the payment reaches the payment processor.
See also: End-to-end encryption
An example of P2PE in action:
- 1.Capturing the data. When you swipe your credit or debit card, the payment terminal immediately encrypts your card information.
- 2.Transmission. The encrypted data is then sent over to the payment processor. Because it's encrypted, even if someone intercepts the data during transmission, they won't be able to read or misuse it.
- 3.Processing payment. The payment processor receives the data, decrypts it, and processes the payment.
- 4.Completing the transaction. Once the payment processor verifies and approves the transaction, it sends a confirmation back to the payment terminal. Throughout this entire process, your card information remains encrypted and safe from prying eyes.
P2PE helps businesses meet security standards and reduce the risk of data breaches and fraud. It allows them to build customer trust. The only drawback is that businesses have to rely on their payment providers to maintain the high encryption standards and securely manage encryption and decryption keys.
