What is end-to-end encryption in retail?

Point of Sale (POS) Glossary

End-to-End Encryption (E2EE) in a POS system refers to the secure manner that data is transmitted to and from a gateway and payment processor. A point of sale system captures customer card and transactional information. It must send this to external third-party processing partners to get authorization for purchases and to complete payments.

E2EE is a secure communication method that prevents unauthorized parties from accessing data during transmission from a point of sale system to processing partners. The credit card industry requires PCI Compliance that includes data protection standards, such as End-to-End Encryption, to protect customer data from hackers. This protection is a critical component to being in compliance with industry standards and in keeping merchants and customers safe from data theft.