Australians replacing signature with PIN at the point of sale
Sydney - Australian cardholders will be required to use PINs instead of signatures from 1 August 2014 when paying with their debit and credit cards, Visa said today.
The move is part of an industry-wide upgrade of the payment system to chip and PIN technology aimed at reducing fraud.
“Chip cards have had a dramatic effect on reducing counterfeit card fraud, and when used in combination with PIN will keep Australia’s fraud rate low now and into the future,” said Vipin Kalra, Visa’s Country Manager for Australia.
“Chip has already cut counterfeit fraud losses on Australian cards by 44 percent in the 12 months ending June 2013 and the move to PIN will help close the door on lost and stolen card fraud .”
Mr Kalra said Visa is working with banks, merchants, cardholders, card schemes and the broader payments industry to manage the phasing out of signatures in Australia.
Over 60 percent of cardholders already use a PIN to verify their transactions at the point of sale and Visa is encouraging all Australian cardholders to PIN instead of sign.
“The move to PIN takes better advantage of EMV or the ‘chip technology’ on Visa cards, which is the international standard that provides the most security for electronic payments today,” Mr Kalra added.
“It’s important cardholders start using PIN now, so they are prepared for the change well before August 1. Consumers who don’t know their PIN can contact their financial institutions to receive one,” he said.
There is no change to online or Visa payWave transactions. For transactions under $100 cardholders can simply wave and go. Cardholders can also use Visa payWave for purchases above $100, with a PIN. Visa payWave is protected by multiple layers of security and meets all the same security standards as traditional chip cards.
There will also be no change for visitors to Australia with overseas-issued Visa cards, who will be able to sign or PIN as previously.
Visa is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world’s most advanced processing networks — VisaNet — that is capable of handling more than 47,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products.
For more information, visit www.visa.com.au and @VisaNewsAU.
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