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I would check my network connections between the terminal and host computer. Make sure you are not experiencing large amount of collisions or loose connections. I would also check the logs on the host computer to make sure some event doesn't correspond to the times you are loosing your session. If there is, might give you a road to track down your problem.
The encryption that is loaded on the pin pad is wiped out; this may have happened when powering off the terminal, unplugging the pin pad without unplugging the terminal power source first. What you would have to find out is what platform you are on from your processor, if they are not willing to do it, you can contact companies that will reprogram your pin pad. This will be cheaper than to buy another pin pad.
go to : control panel / switch to classic view / double click system / in the system propeties click hardware tab then device manager / scroll down to your device and see if there is a yellow ! next to it , if there is then there is something wrong
does it have this yellow ! ? was it working before or is this the first use? have you set the port for your device?
Look here Below, for your "Fix".
But ya gonna hve to find a way of getting the info into your PC.. Does it have USB?
You could remove the Hard DRive and connect say Via USB/IDE/SATA adapter on another PC install necessary files into the drive, and or fix it there, and or return to the "Bad Machine" and perform the Fix as per below link. Good luck.