In 1991 Card Fraud was out of control. Technology was used to combat it with on-line authorisation etc.Today the projected UK Fraud will reach £850 million by 2005, but based on French experience of PIN at Point of Sale this will be reduced by 50%.
How
is this?
Chip
Cards reduce counterfeits and using PIN@PoS reduces the lost and stolen
fraud.
Pin@Pos will impact 40 million cardholders and 1.5 million retail staff.
Why
Chips (&Pins) are good for you?
There is no need to get and check signatures, reduction in chargebacks
and admin and protection from liability for fraud effective Jan 2005 for
those protected by PIN@PoS
What
happens if you do nothing?
Fraud always attacks the weakest link. If bank cards are protected by
PIN but point of sale is not then this is the weakest link. From January
2005 the liability for fraud shifts to the un-protected party.If your
PoS is Chip/Pin enabled then you are protected.
If you have
a PDQ terminal then your card acquirer should provide you with the necessary
information.
If you have PoS-iT EFTPoS then we will be updating your software to deal
with chip and pin, but you will need to decide on the card chip readers
and pin pads required for your retail situation. The software we use for
card processing is currently part of the Northampton Town Trial, so we
really are at the forefront of this revolution.
Pin@PoS Time
Frame
Spring 2003 - Public trial in Northampton
2003/2004 - Major Players Rapid Rollout
Jan 2005 - Fraud liability shifts to unprotected parties.
Requirements
you must consider
Where will your Pin Pad be located and do you use other card types that
rely on magnetic stripes like store or staff cards. Do the card readers/pin
pads have the necessary standards certification?
To find out more about Pin@PoS you can look at the following sites:
Barclaycard
Merchant Services www.barclaycardmerchantservices.co.uk
Central Pin@PoS Programme Management Office www.chipandpin.co.uk
APACS www.apacs.org.uk
EMVCo www.emvco.com
