In many countries you can’t use your credit card unless you have a PIN and Australia may soon follow suit, with VISA and MasterCard looking to ban signatures.
On a recent trip to the UK, I was amazed that my parents and friends couldn’t sign for goods purchased with their UK credit cards. Although I have a PIN for my Australian card, I had to sign as the PIN wasn’t recognised, but in some countries I wouldn’t be able to do this.
The requirement for PIN over signatures is to reduce credit card fraud, with VISA and MasterCard pushing to have 90 per cent of all in-store card transactions verified by PIN by the end of the year. And the push is on to have all signatures banned by 30 June 2014.
While the move has been supported by banks and the Australian Retailers Association, small business may be counting the cost of having to purchase portable eftpos machines.
Stolen or cards which have never been received accounted for approximately $23.5 million of fraud in Australia. Fraud on stolen cards declined rapidly in Britain when PIN only transactions were introduced in 2006.
Do you think this is a good move? Would you struggle to remember yet another PIN?