What is Chip and Pin? It is a clever new system aimed to reduce credit and debit card fraud. From January 1st 2005 retailers started processing transactions with new chip and pin cards. Consumers simply key in their Personal Identification Number (PIN) at the checkout, rather than using a signature. Each card is encoded with a four-digit PIN, which is the same number you would use at the cash machine. The new cards will work in the same way as the old ones in every other respect.
Consumers should always key in their PIN number discreetly, taking care that no one else sees their number. However, even if someone sees your PIN they would also need to get your card without you realizing. Previously, fraudsters only needed to obtain a credit or debit card, practice the signature, then begin using the card. Now fraudsters would need your PIN number and your card, making the potential for fraudulent transactions much less likely.
As a consumer, how does it affect me? As your credit and debit cards expire, your bank will issue new chip and pin cards. These are identifiable by the small gold or silver chip embedded into the card. As usual, the bank will ask you to destroy your old card and begin using the new one straight away. To verify a card payment, you will be asked to enter your PIN number. It’s that simple!
If you can’t remember or don’t know your PIN, you can still make your purchase using a signature. This is because card companies have put arrangements in place while everyone is getting used to using chip and pin. If you plan to travel abroad, it is advisable for you to know all your PIN numbers, as you may encounter retailers who will only accept chip and pin.
What about disabled users? Chip and pin cards provide another option for consumers who find it difficult to use their signature. It is expected that chip and pin will enable more consumers to use their cards than the signature system, however card companies and retailers have worked closely with disabled people and conducted trials to ensure no one is excluded.
Consumers who believe they may have difficulty using chip and pin because of their impairment should contact their card issuing company to discuss the options available. No medical evidence will be required to support such requests.
What about mail order, telephone or Internet transactions? These methods of purchasing are not currently covered by chip and pin technology, however the following systems are working in tandem with chip and pin to make these transactions more secure:
How will this affect my Zarr Retailer website? Zarr has developed a system that ensures a security code is provided in order for payment to be processed. If you have any concerns about the security of your online transactions, contact Zarr.
