Encryption

Encryption refers to the translation of data into a secret code for the purpose of securely transmitting such data. Encryption is the most effective way to achieve data security. To read an encrypted file, you must have access to a secret key or password that enables you to decrypt it. Unencrypted data is called plain text, and encrypted data is referred to as cipher text. There are two main types of encryption: asymmetric encryption (also called public-key encryption) and symmetric encryption.

The card associations (VISA and MasterCard) require all credit card information to be encrypted before it is transmitted over an electronic medium, such as the Internet. Electronic payment gateways must be encrypted for this reason.