A coded symbol encoding and decoding system and method provides improved efficiency and security by compressing and/or encrypting data prior to encoding the data into a coded symbol symbology. Prior to encoding the data into the coded symbol symbology, the encoding portion of the system compresses and/or encrypts the data. If compression decreases the size of the data by a given threshold, the system encodes the compressed data. Otherwise, the system encodes the uncompressed data. An unused character in the encoded data is used as a flag to indicate whether the data was compressed and/or encrypted. The encoded data is then printed as a coded symbol pattern. Conversely, the decoding portion reads the printed pattern, decodes the resulting data, and if necessary, decompresses and/or decrypts the data. Use of an unused character in the encoded data to indicate whether the data was compressed and/or encrypted allows the system and method to be used with existing symbologies. Separating the compression and the encodation processes allows the system and method to adapt to advances in compression and encodation techniques.