It is an electronic tool applied in conducting debit, credit or smartcard-based transaction and encrypting the identification code of the holder. The Pads are commonly operated in order to read the credit/debit card as well as to permit the client to enter the code safely and to encrypt it before it is sent to the financial institution. The device allows PIN debit transactions which are handled by PIN networks.

The pads contain hardware and software safety elements to guarantee that the passwords along with the encryption keys are removed for the case that someone attempts to tamper this electronic device. The identification cipher is encoded at once during the entry and an encrypted PIN block is set up.

Such electronic devices must be certified and to meet the principles required by the payment card industry to guarantee that they present sufficient security during the procedure of PIN entry along with PIN encryption. Frequently, such devices permit the entry of numbers but some of them also have letters assigned to the numerals.