In just over two weeks signatures will no longer be accepted for purchases made by credit cards. If you haven’t receioved a PIN from your card provider, now is the time to make a request and practice using it.
Personal Identification Numbers (PINs) are nothing new and most people will be comfortable using them to withdraw money from the ATM, however, using them to authorise a payment via credit card is perhaps less appealing. From 1 August 2014, terminals which allow you to sign for purchases will rapidly be phased out and you will be required to enter a PIN to complete the transaction.
So why the move to PIN-only transactions? Simply, it’s deemed to be safer. The PIN transaction is encrypted and sent in real-time to the customer’s card issuer to be authorised. PIN usage can help protect against fraud due to lost or stolen cards, because the fraudster would need to have both the card and the PIN; this is why it is important not to divulge your PIN to any other person, including bank and shop staff.
With just over two weeks until the changes take effect, now is the time to request a PIN from your financial institution to ensure you’re not caught short at the checkout.
To find out more about PIN transactions, visit PINwise.com.au.