Chip and Pin payment cards
Chip and Pin is a payment card system that is now being introduced by the local banks to give added protection to cardholders, merchants and the financial institutions. It combines a new type of microchip (chip) on the front of the card with the...
Chip and Pin is a payment card system that is now being introduced by the local banks to give added protection to cardholders, merchants and the financial institutions.
It combines a new type of microchip (chip) on the front of the card with the security of a four digit Personal Identification Number (Pin).
The Pin is the same one that today is used on ATMs.
The chip card has a gold or silver chip on the left-hand side and chip technology has been proven to hinder and deter card crime. It is harder to copy or change than the traditional cards that only have a magnetic stripe and so helps safeguard against counterfeiting.
Entering a four digit Pin that is known only to the cardholder, when making a purchase, is much more secure than signing one's name.
This new system is checked by technology rather than read by the human eye.
Unlike a signature the Pin cannot be forged.
A cardholder will have three consecutive chances to enter the Pin correctly, even if it is in three separate locations. If the transaction is unsuccessful after the first attempt, the cardholder should try again, but to protect the card against unlawful use, three failed attempts will "lock" the Chip card.
For security reasons the Pin is never printed on the ATM or EPOS (Electronic Point of Sale) receipt and will not be recorded in any way. It is very simple - instead of signing one's name the cardholder will input the Pin. Never give your Pin to the salespersons to input the digits themselves.
Here are some security measures to protect your card:
• Treat your card like cash. Never leave it unattended;
• Sign your card immediately upon receipt;
• Keep the card away from magnets and any other magnetic sources especially handbag clasps, mobile phones, TVs and speakers. These may damage the magnetic stripe and the chip on the card;
• Do not allow anyone else to use the card;
• Do not disclose the card number expect when properly using the card.
Here are some security measures to protect your Pin:
• Memorise the Pin upon receipt and immediately destroy the notification of your Pin;
• Never give the Pin to anyone else, including bank staff;
• Do not store your Pin on your mobile;
• Never quote your Pin in correspondence, over the telephone or the internet;
• Shield the keypad from view when entering the Pin on the ATM or on the EPOS terminal.
To make payments overseas, in most cases a cardholder will be asked to enter the Pin on the EPOS terminal to complete the transaction. However, in certain countries the cardholder may still be required to sign the sales voucher.
When using an ATM the cardholder should never accept help from "well-meaning" strangers and should never allow themselves to be distracted.
Cardholders should register the telephone number of their financial institution on their mobile so that if they lose their card they will immediately report the loss / theft for their card to be stopped.
The new chip and Pin terminals come in different shapes and sizes. Some terminals may be fixed in one location while others may be hand held to make payment more convenient, for example, in restaurants. Regardless of what the terminal looks like the process will be similar:
• The retailer will either ask the cardholder to insert the Chip card into the Chip reader or will take the card from the cardholder and insert the card into the terminal himself;
• The retailer will enter the amount of the transaction;
• The cardholder will be asked to check and agree the transaction amount on display and to enter the PIN;
• The PIN will not be displayed; the cardholder will see asterisks (****) instead;
• If you make a mistake, press "clear" and re-enter the Pin;
• The Pin will not be printed on the receipt and will not be recorded in any way.
It is very simple. Instead of signing their name the cardholders will key in a Pin, the same Pin that is used for ATM transactions. Once both retailers and cardholders get used to this new system they should find that this is a lot faster.
If a retailer in an overseas country has not upgraded to Chip and Pin yet, the cardholder would still be asked to sign his / her name as at present.
(The above article has been submitted by the Malta Bankers' Association).
It combines a new type of microchip (chip) on the front of the card with the security of a four digit Personal Identification Number (Pin).
The Pin is the same one that today is used on ATMs.
The chip card has a gold or silver chip on the left-hand side and chip technology has been proven to hinder and deter card crime. It is harder to copy or change than the traditional cards that only have a magnetic stripe and so helps safeguard against counterfeiting.
Entering a four digit Pin that is known only to the cardholder, when making a purchase, is much more secure than signing one's name.
This new system is checked by technology rather than read by the human eye.
Unlike a signature the Pin cannot be forged.
A cardholder will have three consecutive chances to enter the Pin correctly, even if it is in three separate locations. If the transaction is unsuccessful after the first attempt, the cardholder should try again, but to protect the card against unlawful use, three failed attempts will "lock" the Chip card.
For security reasons the Pin is never printed on the ATM or EPOS (Electronic Point of Sale) receipt and will not be recorded in any way. It is very simple - instead of signing one's name the cardholder will input the Pin. Never give your Pin to the salespersons to input the digits themselves.
Here are some security measures to protect your card:
• Treat your card like cash. Never leave it unattended;
• Sign your card immediately upon receipt;
• Keep the card away from magnets and any other magnetic sources especially handbag clasps, mobile phones, TVs and speakers. These may damage the magnetic stripe and the chip on the card;
• Do not allow anyone else to use the card;
• Do not disclose the card number expect when properly using the card.
Here are some security measures to protect your Pin:
• Memorise the Pin upon receipt and immediately destroy the notification of your Pin;
• Never give the Pin to anyone else, including bank staff;
• Do not store your Pin on your mobile;
• Never quote your Pin in correspondence, over the telephone or the internet;
• Shield the keypad from view when entering the Pin on the ATM or on the EPOS terminal.
To make payments overseas, in most cases a cardholder will be asked to enter the Pin on the EPOS terminal to complete the transaction. However, in certain countries the cardholder may still be required to sign the sales voucher.
When using an ATM the cardholder should never accept help from "well-meaning" strangers and should never allow themselves to be distracted.
Cardholders should register the telephone number of their financial institution on their mobile so that if they lose their card they will immediately report the loss / theft for their card to be stopped.
The new chip and Pin terminals come in different shapes and sizes. Some terminals may be fixed in one location while others may be hand held to make payment more convenient, for example, in restaurants. Regardless of what the terminal looks like the process will be similar:
• The retailer will either ask the cardholder to insert the Chip card into the Chip reader or will take the card from the cardholder and insert the card into the terminal himself;
• The retailer will enter the amount of the transaction;
• The cardholder will be asked to check and agree the transaction amount on display and to enter the PIN;
• The PIN will not be displayed; the cardholder will see asterisks (****) instead;
• If you make a mistake, press "clear" and re-enter the Pin;
• The Pin will not be printed on the receipt and will not be recorded in any way.
It is very simple. Instead of signing their name the cardholders will key in a Pin, the same Pin that is used for ATM transactions. Once both retailers and cardholders get used to this new system they should find that this is a lot faster.
If a retailer in an overseas country has not upgraded to Chip and Pin yet, the cardholder would still be asked to sign his / her name as at present.
(The above article has been submitted by the Malta Bankers' Association).