Understanding PIN
The full form of PIN is Personal Identification Number. PIN refers to a 4 to 6 digit numeric password that helps in identifying the authenticity of a customer at the time of any electronic transaction. A PIN is a unique guard created by the user to facilitate smooth transactions while using an ATM, Credit Card, Debit Card or other transaction options.
The main aim of a PIN is to protect online transactions from any unauthorized access through an additional security layer. It is always advised to never share your PIN with anyone for security purposes.
How Does a PIN Work?
- Whenever a user is trying to access any account, a prompt comes up and asks for a PIN.
- Once the user enters a PIN and it matches to the PIN already stored in the system, the user gets access to their account.
- If the two numbers do not match, the access is denied.
Benefits of PIN
- Security: Since the cardholder is only aware of the PIN, the chances of any fraudulent activities in case of theft declines.
- Convenience: Only your PIN and card is enough to conduct any digital transaction such as cash withdrawal etc.
- Acceptability: A PIN is accepted worldwide by the financial institutions. The users can easily make transactions internationally.
- Customization: Any cardholder is free to change their PIN whenever required.
- Versatility: A PIN gives access to various platforms which makes it versatile for different types of transactions.
Characteristics of PIN
- Short & Rememberable: A PIN is typically a 4 to 6 digit numeric code that is easy to remember.
- Unique: Every user creates a unique and personal PIN which should not be shared with anyone.
- Authentication: A PIN is the access to your account as it identifies the user’s authenticity.
Overall, a PIN plays a crucial role when it comes to maintaining security of any account. Its worldwide acceptance makes it easy for the users to conduct transactions over the seas as well while preventing their accounts from any fraudulent activities.
