What is a PIN?
A PIN (Personal Identification Number) is a numerical code used to authenticate a person to a system. It is a common security measure used in banking, payments, and money, to protect users’ accounts and transactions.
What does it mean/stand for?
PIN stands for Personal Identification Number.
How is it used?
PINs are used in a variety of ways in the banking, payments, and money world. Some common examples include:
- ATM withdrawals: When you withdraw cash from an ATM, you will be prompted to enter your PIN. This verifies that you are the authorized user of the ATM card and that you have access to the account associated with it.
- Debit card purchases: When you use your debit card to make a purchase at a store or online, you may be prompted to enter your PIN. This verifies that you are the authorized user of the debit card and that you have access to the account associated with it.
- Online banking: When you log in to your online banking account, you will be prompted to enter your PIN or password. This verifies that you are the authorized user of the account.
Who issues it?
PINs are typically issued by banks, credit unions, and other financial institutions. When you open a bank account or apply for a debit card, you will be given a PIN. You may also be able to choose or change your PIN yourself.
How does it work?
When you enter your PIN, it is compared to the PIN that is stored on file for your account. If the PINs match, the transaction is allowed to proceed. If the PINs do not match, the transaction is declined.
Why is it needed?
PINs are needed to add an extra layer of security to banking, payments, and money transactions. Without a PIN, anyone who has your ATM card or debit card could use it to make unauthorized transactions.
Examples
Here are two to three examples of how PINs are used in the world of banking, payments, and money:
- ATM withdrawals: When you withdraw cash from an ATM, you will be prompted to enter your PIN. This verifies that you are the authorized user of the ATM card and that you have access to the account associated with it.
- Debit card purchases: When you use your debit card to make a purchase at a store or online, you may be prompted to enter your PIN. This verifies that you are the authorized user of the debit card and that you have access to the account associated with it.
- Online banking: When you log in to your online banking account, you will be prompted to enter your PIN or password. This verifies that you are the authorized user of the account.
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This page was last updated on October 6, 2023.
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