Online PIN refers to the process in card transactions where the PIN information is sent within the message, and the password is verified by the card-issuing institution. In transactions carried out with Online PIN, since the password cannot be read via the chip, if the password is entered incorrectly, the error code returned by the card-issuing institution is displayed.
Offline PIN refers to the process in card transactions where the PIN information is kept on the chip and PIN verification is also performed via the chip. If the password is entered incorrectly, a warning about the password error can be shown before the transaction is even initiated.
So, can PIN entry be skipped?
First, let's note that skipping the PIN information is referred to as PIN bypass.
PIN bypass may be allowed for transactions carried out with Offline PIN. However, PIN bypass should not be applied to transactions carried out with Online PIN. This is because the card-issuing institution expects the password information within the message.
If PIN bypass is attempted for transactions carried out with Online PIN, it is more appropriate to display a “Transaction cannot be completed without a password” warning.
In summary, PIN bypass can be applied to transactions carried out with Offline PIN, but after such transactions your institution may send an SMS notification asking you to confirm your password. If you carry out this type of transaction multiple times, your transactions may be flagged by fraud detection scenarios.