The supplied passwords must be in clear-text.
PAM is used to update the password in the system database according to the PAM chpasswd configuration.
When chpasswd fails to update a password, it continues updating the passwords of the next users, and will return an error code on exit.
This command is intended to be used in a large system environment where many accounts are created at a single time.
The options which apply to the chpasswd command are:
Remember to set permissions or umask to prevent readability of unencrypted files by other users.
passwd(1), newusers(8), useradd(8).