Retailers back moves by banks to standardise PINs for card verification

THE Australian Retailers Association (ARA) has welcomed the Australian Competition and Consumer Commission’s (ACCC) decision to support an industry-wide initiative to move to Personal Identification Numbers (PINs) on July 1 as the primary method of card verification in Australia.

 

ARA executive director Russell Zimmerman said the phasing out of signature verification by Visa, MasterCard, American Express and participating financial institutions by July 1, 2014 will help protect consumers and retailers alike from fraudsters.

"We know that around 68 percent of Australian consumers prefer PIN payments when purchasing high-cost items," Mr Zimmerman said, quoting the Australian Consumer Payment Snapshot Report 2013 conducted by researchers Pureprofile.

The new process has come about through the Card Industry Security Initiative (ISI), which is made up of 10 Australian financial institutions, including all of the major card issuers plus Visa, MasterCard, American Express, and Diners Club International . The goal of the ISI has been to provide a consistent experience for consumers when using credit or debit cards to pay for purchases in Australia, regardless of the financial institution that issues the card.

"The real change for expanding PIN usage will be a behavioural one," Mr Zimmerman said. "Habits at point of sale will require some adjustment and consideration; however, it is a move that will help safeguard against fraud, making cards even safer to use and is a welcome move by Australian retailers.
 
"Using a PIN helps protect against fraud due to lost or stolen cards. The chance of someone correctly guessing your PIN, which is usually between four and six digits long, is very small.
 
"The move from signature to PIN is about strengthening Australia’s payment security and we applaud the ACCC and the Card Industry Security Initiative,” Mr Zimmerman said.

"Chip-enabled cards that allow PIN and contactless at point of sale use some of the most advanced security technology available. While Australia’s payment system is already safe, this initiative is a move to make the way we pay even safer,” Mr Zimmerman said.
 
www.retail.org.au

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