What is P2PE?

What is P2PE?

P2PE (Point To Point Encryption) describes technology that encrypts data  at the electronic payment card input hardware, and decrypts at a credit card  switch/gateway or credit card processor. 

What are the Benefits of P2PE?

  • Because the input hardware is injected with encryption keys, the resulting encrypted data can only be decrypted at the credit switch or credit card processor.
  • Credit Card data is encrypted throughout it’s life-cycle in a merchant’s cardholder data environment, increasing the security of merchant’s POS system significantly.
  • There is a PCI benefit as well because it allowed POS to be deemed as having reduced scope for PCI assessment/attestation.

What are the limitations of P2PE?

  • P2PE does not address counterfeit card creation or use.
  • Does not address storage or encrypted card numbers.

What is P2PE’s status in the marketplace.

  • Is starting to see availability now.
  • Most prevalent in relationships between payment terminal manufacturers and processors, where a processor injects a payment terminal with keys whose data can only be decrypted at the processor.
  • These solutions lock the merchant into a processor via the specific hardware.

Software Requirements for P2PE

  • If Integrated with the merchant’s POS system, the POS system has to be able to accept and allow the proper flow of encrypted card numbers through the system.
  • The POS system can’t decrypt the numbers, which is a security benefit.

P2PE for hardware requirements vary depending on the software version and operating system platform
For more information on this topic, please contact the
CCS Retail Systems Support Department.


– John

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