The move to PIN only purchases is part of a security initiative to make payments safer and more convenient for your business and customers, in a bid to crack down on Australia’s credit card fraud that has previously run to a shocking $81 million a year – most of this on credit cards where it wasn’t necessary to enter a PIN. From the first of this month, PIN has become the main form of card payment authorisation across Australian retail outlets, phasing out signature verification as point of sale terminals migrate to new software. But just why is this industry-wide movement necessary?
What does this mean for your business?
Whilst signatures can be forged, PINs are a much more secure form of identification with only a one in 10,000 chance of someone guessing their personal identification number.
PIN transactions are more efficient than signing too, the customer only needs to enter their digits and the transaction is done.
There will be no need to worry about changes to terminal software or hardware, as transactions will be authorised electronically by the cardholder’s bank.
Useful information for staff:
For purchases under $100 on chip cards, contactless transactions are still available, such as Visa payWave, MasterCard PayPass or American Express Contactless. However for any transactions greater than $100 however, a PIN will need to be entered.
If a customer has forgotten or mistaken their PIN, advise them to call or visit their nearest bank branch, or if they have a bank app on their smartphone, many of these allow for quick PIN changes too!
PINs can be changed at any time at bank branches or at most ATMs, when the current PIN is known.
Remaining Signature Use
Customers sill may need to use a signature when a terminal is down or when shopping overseas, so it’s still important that the back of a customer’s card is still signed.
The change to PIN does not affect international cardholders they will continue to use PIN or sign, as determined by their card issuer.
Customers who may find it challenging to use PIN due to disability or medial condition, may be eligible for a signature-only card that enables them to continue signing rather than using PIN. If staff members come across customers with these disabilities, encourage them to contact their bank to find out more about signature exceptions.