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About Chip & PIN
Overview
Seen as the more secure way to pay, Chip & PIN is being implemented in many regions across the world.
In the UK the retail and banking industries have joined forces to implement Chip & PIN as a means of combating the problem of credit and debit card fraud. The purpose of Chip & PIN is to eradicate both the use of cloned cards and transactions made by someone other than the card holder. The chip is designed to ensure that the card is genuine and the Personal Identification Number (PIN) identifies the User to the Chip.
By the end of 2005 most credit and debit card transactions, where a consumer has been issued with a Chip & PIN card and is present during the transaction, will be verified by the consumer keying in a Personal Identification Number (PIN) rather than by signing a paper receipt.
Point-of-sale Chip & PIN devices vary in size and shape; some PIN terminals will have portable or cordless PIN pads, like those often seen in restaurants in France.
Consumers do not need to take any action themselves as their card issuer will issue the cardholder with a new Chip & PIN card when they are ready to issue the new type of card.