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From 1 August 2014, consumers will no longer be able to sign for debit or credit card payments – instead, they will need to enter their personal, secure PIN.
The PINwise communication campaign is being led by the Industry Security Initiative, a collective of Australia’s major financial institutions and card providers. The initiative aims to reduce the incidence of fraud and make paying with a card even more secure.
Australia Post’s Head of Payments, Richard Mann, outlines how the “card present” changes will affect retailers, including e-commerce businesses, and what you need to tell your customers about the changes.
“This initiative is all about reducing the incidence of fraud in Australia. The major card schemes, including Visa, MasterCard, American Express and Diners Club, have come together to form the Industry Security Initiative. They have agreed to stop using signatures, to help minimise fraud. Australia has very high credit card usage compared with the rest of the world, but we also have very low fraud rates. This initiative is aimed at reducing fraud even further.”
PINwise is an initiative of the Australian payments card industry to encourage the use of PIN instead of signature.
“Anybody who has a terminal in their shop or location and accepts card payments – that is a ‘card present’ transaction. It will also affect retailers who use a terminal at markets – it applies to any terminal where a card with a chip is used. All of those transactions will require a PIN from 1 August 2014.”
“Businesses don’t need to tell their customers anything – the financial institutions and PINwise are leading communications. However, as a business, you should be aware that you may have some customers who have always used a signature, and they won’t be able to use that option from 1 August. You might need to remind them about the changes.”
“No, people won’t be able to opt to use a signature. Some people, however, will still be allowed to use a signature, if they have a special dispensation due to disability. International cards may also still need a signature – for instance, many American cards still use signature, and some don’t even have a chip.”
“The changes only affect ‘card present’ transactions – they do not apply to online or phone payments.”
“Contactless transactions above $100 will require a PIN from 1 August 2014.”