1. The method of operating a personal verification system including encoding means having an input for receiving a control code input representative of the location, and a code word input means coupled to the encoding means and operable for verifying the authority of an individual to complete transactions on the basis of the combination of an individual code word which is peculiar to the individual, a secret code word which need only be known to the individual, a control code representative of the location, and a compiled code word which is derived from the other of the code words, the method comprising the steps, performed in selected sequence, of: preparing a logical encoding status at the location in accordance with a selected logical combination of the control code for the location, the individual code word and a secret code word received from the individual prior to verification of his authority to complete a transaction; encoding the combination of the control code for the location, the individual code word and the secret code word received from the individual by logically combining the control code for the location and the secret code word received from the individual to produce an encrypted control code, and by encoding the combination of the encrypted control code, the individual code word and the secret code word received from the individual in accordance with said logical encoding status to produce a compiled code word therefrom; preparing a record of said compiled code word for subsequent use in verifying the authority of the individual to complete a transaction; applying to the code word input means of the system both an individual code word for identifying the individual attempting to complete a transaction and a secret code word from such individual; preparing a logical encoding status in the encoding means of the system in accordance with said logical combination of the control code for the location, the individual code word and secret code word applied to the code word input means of the system; encoding the combination of the control code for the location, the individual code word and the secret code word applied to the code word input means by logically combining the control code for the location and the secret code word received from the individual to produce an encrypted control code, and by encoding the combination of the encrypted control code, the individual code word and the secret code word received from the individual in accordance with said logical encoding status prepared in the encoding means of the system to produce a corresponding compiled code word therefrom; comparing said corresponding compiled code word with the compiled code word from said record for the authorized individual having such individual code word; and controlling completion of the transaction in response to the comparison of the compiled code word from said record with said corresponding compiled code word produced from the control code for the location, the applied individual code word and secret code word received from the individual attempting to complete the transaction.