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Are You Prepared For New Chip and PIN Deadline?
 If
you sell products using debit or credit
cards then you need to be aware of the
changes to the Chip and PIN rules. From 14th
February 2006, all customers using a Chip
and PIN card will need to use the pin when
using a Chip and PIN terminal; they can no
longer choose to sign instead.
This change has been brought in after
figures show a large drop in the amount of
fraud taking place on lost, stolen or
counterfeited cards. The amount of fraud in
the first six months of 2005 was down by 29%
(£36million) on the same period in 2004.
This shows that the introduction of Chip and
PIN is having a positive effect on the
amount of fraud committed in the UK. This
not only benefits consumers, but means your
business is much less likely to be a victim
of fraudulent spending.
Of your card carrying customers, around 90%
will use a Chip and PIN card; so it is vital
to ensure that the minority that do not yet
use their pin are prepared.
Remember that some transactions will not yet
be using Chip and PIN:
- Purchases in outlets which are not yet
using chip and PIN technology
- Purchases made on cards which have not
yet been upgraded to chip and PIN
- Purchases made abroad in countries which
have not yet upgraded to chip and PIN
- Disabled customers using a chip and
signature card instead of a chip and PIN
card will always continue to sign
If you do not yet have Chip and PIN
equipment, then you need to contact your
bank or supplier for more information. The
cost is worth it for the long term increase
in fraud security, and the knowledge that
your consumers will see you a safe business
to buy from.
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