There a two type of PIN verification before sending to the network. the type is local verification and network verification. but for the now all atm commonly using network pin verification for their ATM.
Network PIN verification requires that the PIN be padded to 16 digits andencrypted before sending it to the Network. The terminal can encrypt thecustomer-entered PIN once or twice, then send it to the Network withunencrypted PAN and offset. The PIN may be send unencrypted, but this is notrecommended only for system testing. When the encrypted PIN reaches theverification point in the network, a single (or double) decryption restores the customer entered PIN. Then the generated PIN will be compared with thecalculated PIN. If the PIN is correct the transaction can be continued. The institution may choose to verify the encrypted PIN without performing decryption. This can be done by comparing the encrypted PIN to a table of encrypted PIN values. Therefore the PAN is used as a table look-up key.For remote PIN verification, the PIN is sent to the network in two different forms:
-Diebold PIN Block
The terminal encrypts the block and sends it to the network. The network thenhandles the PIN verification.
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