Point-to-Point Encryption (P2PE)

What Is Point-to-Point Encryption (P2PE)?

Point-to-point encryption (P2PE) is a technology standard made to secure electronic financial transactions. By observing these rules, engineers of software and hardware associated with the electronic payments network can guarantee that their plans are mutually viable and versatile against possible assaults by hackers.

How Point-to-Point Encryption (P2PE) Works

The P2PE standards were developed by the PCI Security Standards Council, a consortium of major companies engaged with the electronic payments network. The core purpose of this organization is to work with the undeniably boundless utilization of electronic payments, which have developed to several trillion dollars yearly in recent years.

One of the main factors required to support this growth is the presence of robust security shields to safeguard against hackers. All things considered, as consumers and shippers progressively conduct transactions online, these electronic payments become an undeniably enticing target for hackers. Payments processors and different partners must along these lines constantly maintain and work on their systems to remain one step ahead of would-be criminals.

Under the P2PE standards, transaction data is completely encrypted from the time the customer enters their data through to the point where that information is sent to the payment processor. When received, the payment processor unscrambles the data and either supports or declines the transaction.

Since the transaction data is completely encoded in the meantime, it isn't defenseless against capture and abuse by unauthorized outsiders. Even on the off chance that a hacker were to block a specific transaction, the information got would be garbled since it would in any case be in its scrambled form. To decode the information, the client must have the encryption keys, which are simply made accessible to authorized parties.

True Example of Point-to-Point Encryption (P2PE)

Individual companies are free to foster new products and services that interface with the electronic payments ecosystem. Notwithstanding, for those companies to accomplish P2PE compliance, they must show that their new offering maintains or surpasses the P2PE standards. In practice, this means they must guarantee that all transaction information is completely encoded, that any hardware associated with the offering is securely managed, and that any cryptographic keys utilized in the process are securely produced, communicated, and stored.

To assist those engaged with the financial transaction industry with keeping up to date with changes to these standards, the PCI Security Standards Council maintains normal events and communications. Historically, this administering body was established by major payment brands, including American Express (AXP), Discover Financial Services (DFS), MasterCard (MA), and Visa (V). In any case, enforcement of compliance with the P2PE standards is the responsibility of the individual companies that offer products and services utilizing these standards, as opposed to being the responsibility of the administering council itself.

Features

• P2PE is a technology standard intended to guarantee the security of electronic financial transactions.
• The P2PE standards keep on advancing as new innovations become accessible.
• It was developed by a consortium of major payments-handling companies.