A need to educate consumers on remembering their pin is behind Visa’s decision to postpone its phase out of customers signing for payments. The change, originally scheduled for April 1, is now on hold indefinitely with a tentative suggested date ‘near the end of 2014’.
“The reason for shifting our date is to align ourselves with the rest of the industry,” Visa’s Australia country manager, Vipin Kalra, told media.
Customers remembering their pin was the biggest barrier to successful implementation of chip and pin technology, according to Jost Stollman of Tyro Payments.
Credit card users in the Europe and Asia are already used to chip and pin technology, as it has been introduced and increased in popularity over the past few years. In 2012 it was also introduced in the US after Visa, MasterCard and Europay (another major credit card provider which also enables the technology) began a series of initiatives to encourage US retailers to accept chip and pin cards.
Security always a concern
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The main reason for moving to chip and pin technology, as cited by Visa and the other credit card companies, is reduced risk of fraud. Chip and pin, or EMV technology as it’s also called, encodes data separately for each transaction a customer makes, as opposed to the payment information being stored and never changing when a magnetic stripe is used.
Data from the UK also supports the theory that chip and pin technology is more secure, as the UK Cards Association, along with Financial Fraud Action UK published a report in 2011 confirming that instances of card fraud between 2004 and 2011 had dropped 63% during that time largely due to the introduction of chip and pin cards. A MasterCard spokesman also told media that widespread use of pin numbers will decrease instances of fraud.
You can get used to using a chip and pin card now
Anyone with a bank account in Australia should by now have a chip and pin card, whether that’s a debit card linked to their bank account or a credit card. In fact many banks issue chip and pin cards as standard and will no longer issue magnetic stripe cards. That means that it is possible to start using your chip and pin card today and get use to remembering your pin number if you aren’t using this facility every time you pay anyway. If you are thinking about applying for a credit card, doing a comparison or upgrading your credit card, if you do so now you will be issued with a chip and pin card. The issue of card technology and security is also covered extensively on the creditcard.com.au blog.