Final answer:
The Point to Point Encryption program approves terminals for securely encrypting cardholder data, contributing to compliance with the PCI DSS and reducing risks of data breaches.
Step-by-step explanation:
The Point to Point Encryption (P2PE) program allows terminals to be approved for the secure encryption of cardholder data. This security measure is designed to protect sensitive payment card information from the point of swipe or entry through to the payment processor or acquirer. The encrypted data is indecipherable to unauthorized parties, significantly reducing the risk of cardholder data being compromised during a transaction. Businesses that use P2PE-approved terminals can help ensure they are compliant with industry security standards, such as the Payment Card Industry Data Security Standard (PCI DSS).