Abstract: A Personal Identification Number (PIN) pad includes a secure processor and is operated in two modes: 1) a secure mode during which key data associated with depressed keys are encrypted by the secure processor and provided to a transaction manager that executes on a processor of a transaction terminal in encrypted format, and 2) a non-secure mode during which key data associated with depressed keys are not encrypted and are received by the transaction manager in a clear format. The transaction manager activates the secure mode based on transaction processing for a transaction at the terminal. When secure mode is activated, the secure processor causes one or more integrated lights/speakers of the PIN pad and/or of other integrated peripherals of the terminal to illuminate or play a sound, providing an indication to a user that key entry is secure and safe for entry on the PIN pad during the transaction.