When a password is encoded with PROC PWENCODE, the output string includes a tag that identifies the string as having been encoded. An example of a tag is {sas001}. The tag indicates the encoding method. SAS servers and SAS/ACCESS engines recognize the tag and decode the string before using it. Encoding a password enables you to write SAS programs without having to specify a password in plaintext.

The encoded password is never written to the SAS log in plain text. Instead, each character of the password is replaced by an X in the SAS log.

PROC PWENCODE uses encoding to disguise passwords. With encoding, one character set is translated to another character set through some form of table lookup. Encryption, by contrast, involves the transformation of data from one form to another through the use of mathematical operations and, usually, a “key” value. Encryption is generally more difficult to break than encoding. PROC PWENCODE is intended to prevent casual, non-malicious viewing of passwords. You should not depend on PROC PWENCODE for all your data security needs; a determined and knowledgeable attacker can decode the encoded passwords.