What is 'Point-To-Point Encryption (P2PE)'

Point-To-Point Encryption (P2PE) is an encryption standard established to provide a robust security solution for electronic financial transactions.

BREAKING DOWN 'Point-To-Point Encryption (P2PE)'

Point-To-Point Encryption (P2PE) is an encryption standard established by PCI Security Standards Council designed to provide a robust security solution for electronic financial transactions.  Under P2PE, transaction data is encrypted using the PCI standard from the time customer data is captured at the point of sale until it is transmitted to the payment processor, which decrypts the data and approves the transaction.

P2PE encryption provides increased security to electronic financial transactions. With this robust encryption in place, both merchants and consumers are at decreased risk of exposing personal and financial data during a transaction.

The encrypted data is indecipherable to third parties, so even in the event of a data breach the data is useless to any party without the encryption keys. Encryption keys are never made available to the retailer. While many there are many solutions available to protect customer data and transaction data, including tokenization and EMV authentication for chip-card transactions, P2PE is rated highly by industry stakeholders because it is administered via the PCI Security Standards Council.

P2PE providers include third-party hardware and software encryption solutions, including acquirers, payment gateways and card processors. P2PE providers are required to provide reliable, instantaneous service in electronic transactions in order to maintain P2PE certification.

P2PE and the PCI Security Standards Council

While there are other forms of encryption available on the market to secure transmissions of electronic information, only P2PE solution providers meet the standards set by PC! Security Standards Council.

To meet PCI standards, a P2PE solution must meet the following requirements:

  • Secure encryption of payment card data at the point of interaction
  • P2PE validated applications at the point of interaction
  • Secure management of encryption and decryption devices
  • Management of the decryption environment and all decrypted account data
  • Use of secure encryption methodologies and cryptographic key operations, including key generation, distribution, loading/injection, administration and usage.

The PCI Security Standards Council is a global forum for the financial transaction industry established to develop and enhance security standards in financial transactions. The PCI Security Standards Council was founded by five payment brands, including American Express, Discover Financial Services, JCB International, MasterCard and Visa to establish and deploy the PCI Data Security Standard. While the Council is governed by the five founding members as well as Strategic Members, enforcement of compliance with the standards, as well as determination of penalties for non-compliance, is the responsibility of individual payment brands instead of the Council.

RELATED TERMS
  1. Credit Card Encryption

    Credit card encryption is a security measure that is used to ...
  2. Alliance of American Insurers (AAI)

    The Alliance Of American Insurers is a coalition consisting primarily ...
  3. Data Anonymization

    Data anonymization seeks to protect private or sensitive data ...
  4. Transaction Authentication Number ...

    A transaction authentication number is a one-time code used to ...
  5. Cloning

    Cloning is copying stolen credit or debit card information to ...
  6. International Accounting Standards ...

    International Accounting Standards are an older set of standards ...
Related Articles
  1. Investing

    Symantec in First Benelux Partnership With Xolphin

    The Mountain View, Calif.-based cybersecurity pioneer strengthens its alliance with the Dutch firm.
  2. Tech

    Prevent Employees From Hacking You Computer System

    Cyber security attacks from a current or ex-employee can cause a lot of pain. Here is how to avoid such attacks.
  3. Tech

    Protect Your Small Business from Cybercrime

    Small business owners are a growing target for cyber-attacks; protect yourself and your clients.
  4. Tech

    Is Making Your Home ‘Smart’ A Dumb Idea?

    Remote-controlled devices and home systems could allow hackers to penetrate your sensitive data, not to mention your premises.
  5. Insights

    What Is the Dark Net?

    The Dark Net (or Darknet) is a subset of secret websites that exist on an encrypted network.
  6. Tech

    Blockchain Could Make You—Not Equifax—the Owner of Your Data

    All hype aside, blockchain technology is really good at one thing: taking out the middlemen. Leaky data brokers' days may be numbered.
  7. Investing

    UK Wants WhatsApp Accessible to Intel Services

    Facebook is facing calls by lawmakers to make its messaging app accessible to govt. agencies.
  8. Investing

    Consumer Reports to Create IoT Devices Standards

    CR will create a rating system to help protect consumers' personal data and security.
  9. Tech

    What Is Cold Storage For Bitcoin And Why Does It Matter?

    With increasing incidents of hacking in the world of digital currency, cold storage offers a safe place for the cryptocurrency owners.
  10. Investing

    WhatsApp CEO Quits After Privacy Disagreement

    Parent company Facebook is under pressure to chip away at WhatsApp's core values.
RELATED FAQS
  1. What's the difference between cash-on-delivery differ and delivery against payment?

    Find out more about cash on delivery and delivery versus payment transactions and the difference between these two types ... Read Answer >>
  2. What's the difference between primary and secondary capital markets?

    In the primary market, investors buy securities directly from the company issuing them, while in the secondary market, investors ... Read Answer >>
  3. What is the difference between standard deviation and z score?

    Understand the basics of standard deviation and Z-score; learn how each is calculated and used in the assessment of market ... Read Answer >>
  4. What is the growth rate of the electronics sector?

    Read some projections about the growth rate of the electronics sector. Find out which products are primed to be responsible ... Read Answer >>
Trading Center