What Is a Personal Identification Number (PIN) for a Bank?

A Personal Identification Number (PIN) is a numerical password that verifies your identity when accessing financial services. This confidential code protects your bank accounts from unauthorized access. It confirms you are the legitimate cardholder for transactions.

How PINs Function

A PIN operates by comparing the number you enter with a securely stored representation held by your bank. When you input your PIN at a terminal, it is encrypted before being transmitted. This encrypted value is sent to the bank’s system, which does not store your actual PIN directly but rather a unique, unreadable code derived from it. The system verifies if the entered PIN matches this stored code, granting or denying access without exposing your actual PIN.

Common Uses of Your PIN

Your bank PIN is used across various financial transactions. A primary use is at Automated Teller Machines (ATMs) for activities such as withdrawing cash, depositing funds, or checking account balances. When making purchases with a debit card at a Point-of-Sale (POS) terminal, entering your PIN authorizes the transaction, directly deducting funds from your bank account. Your PIN can also serve as a verification method for phone banking inquiries or for setting up access to online banking features and mobile applications.

Obtaining and Changing Your PIN

Banks issue an initial PIN, often mailed separately from your debit card. If you need to change your PIN, you can commonly do this at an ATM by selecting the “Change PIN” or “Manage PIN” option. Many banks also allow you to change your PIN through their online banking portal or mobile app after logging in. Should you forget your PIN, you will need to request a new one, as banks cannot provide your old PIN. This often involves contacting customer service, visiting a branch, or using online services to set a new one.

Safeguarding Your PIN

Protecting your PIN is important for bank account security; memorize it and never write it down, especially not on your card or in easily accessible places like your wallet or phone. Never share your PIN with anyone, including family members or individuals claiming to be bank employees, as legitimate bank staff will never ask for your PIN. When entering your PIN at an ATM or POS terminal, shield the keypad to prevent others from seeing the numbers. Choose a strong, non-obvious PIN that avoids easily guessable combinations like birth dates, sequential numbers (e.g., 1234), or repetitive digits (e.g., 1111). Immediately report any lost or stolen cards to your bank to prevent unauthorized transactions.