SHA-256 is not typically used directly for data encryption, but rather for hashing and data integrity verification. However, it's often used in conjunction with encryption algorithms, like AES, to ensure the secure storage and transmission of sensitive data, including payment card data.

Here's how it works:

1. _Data encryption_: AES (Advanced Encryption Standard) or other encryption algorithms are used to encrypt payment card data, like PANs, making it unreadable to unauthorized parties.

2. _Encryption key management_: SHA-256 is used to securely manage encryption keys, ensuring that only authorized parties can access and decrypt the encrypted data.

3. _Data integrity_: SHA-256 is used to create a digital signature of the encrypted data, ensuring that it's not tampered with or altered during transmission or storage.

4. _Verification_: The digital signature is verified using SHA-256, ensuring that the data has not been tampered with and is authentic.

By combining encryption, key management, and data integrity verification, organizations can ensure the secure storage and transmission of payment card data, meeting PCI-DSS requirements and protecting sensitive cardholder information.