A PIN reader is typically used to generate a one-time code to verify your identity for online banking or payments, adding an extra layer of security. Here's a general overview of how it works, based on typical functionality:
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Insert your card: Insert your debit or credit card into the PIN reader. The card type will vary depending on the reader (e.g., a specific bank card).
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Enter your PIN: Enter your four-digit Personal Identification Number (PIN) using the keypad on the PIN reader.
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Generate a code: The PIN reader will use the card and the PIN to generate a unique code. This code is usually a series of numbers (e.g., eight digits).
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Use the code: The generated code is then entered into the website or application you're using to confirm your identity or authorize a transaction. This code is temporary and usually expires quickly.
Example: Barclaycard PINsentry
The reference text mentions Barclaycard's PINsentry. Here's how that specific type of PIN reader works:
- You insert your Barclaycard into the PINsentry device.
- You enter your four-digit PIN.
- The device generates a unique eight-digit code.
- You enter this code on the Barclaycard website or app to confirm your identity for payments or account servicing.
- A new code is generated each time you use the PINsentry.
Why Use a PIN Reader?
PIN readers provide a more secure way to authenticate online transactions compared to just using a password because:
- Two-Factor Authentication: They offer two-factor authentication (2FA) or multi-factor authentication (MFA). This means you need something you have (your card) and something you know (your PIN) to generate the code.
- Dynamic Code: The generated code is dynamic (changes each time) and only valid for a short period, reducing the risk of fraud if someone were to intercept it.
