Reviewed by Sep 30, 2020| Updated on
Credit card encryption is a way of securing information used to reduce the probability of stealing credit or debit card information. Credit card encryption is concerned with the security of the card, the card-swiping terminal, and the transmission of the card's information between the terminal and a back-end processor.
Debit and credit cards have turned out to be the favourite payment mode for many. This requirement has forced businesses to install the card-swiping terminal for smooth-running on a daily basis. There has been an increase in frauds, such as stealing card information over the internet. The situation called for a security measure that can protect the customers' information when transmitted over the internet for payment processing.
The credit card encryption method scrambles the transaction information based on a certain algorithm making it unusable by any fraudster without the corresponding encryption key. The key remains only with the merchant and the financial institution of the card.
Until the merchant decrypts this information with the key, the information is not usable. The mechanism makes it safe as long as it remains unlocked.