NEWS
For up to date information on what is happening with chip
and pin please see:
http://www.eft-pos.com/news-chipandpin.html
INTRODUCTION
As part of the overall strategy to reduce credit/debit card
fraud (now running at some 1 million pounds per day in the
UK) chip and pin technology is due to be introduced within
the UK. The introduction of this technology is due to take
place over the next 2 years for UK Retailers who process credit
and debit card transactions in a face-to-face (Cardholder
Present) environment. The first bank trial of the chip and
pin technology is due to take place in Northampton in 2003
and solutions from International POS Ltd will be involved
in these trials. The development of chip and pin solutions
for credit and debit cards is already well advanced and we
already have development kits for customers wishing to interface
chip and pin to our WinTI product. Development kits include
software, integration manual, Verifone
SC5000 chip and pinpad device and chip and pin test card.
Following the trial the banks are looking for an aggressive
adoption of the new credit/debit card chip and pin technologies
by UK retailers. It is expected that magnetic swipe and chip
& pin will coexist for many years yet, but in January
2005 the liability for fraud will pass to the party that is
the 'weakest' part in the chain. What this means is that if
the card taken supports chip and pin and your acquiring bank
supports chip and pin but you are only using a magnetic swipe,
then if the transaction turns out to be fraudulent then you
will have to bear the cost.
Under this new scheme announced by the Association for Payment
Clearing Servives (APACS) with full support from all UK banks
and card issuers, cardholders will be required to enter their
PIN on a special keypad located close to the Point-Of-Sale.
The introduction of this scheme will effect the majority of
face-to-face transactions and will remove the responsibility
of shop staff to confirm the identity of a card holder and
to compare the customer signature to that on the card.
It is hoped that the introduction of PIN @ POS will reduce
the current level of fraud, decrease the amount of time it
takes to process a credit / debit card transaction and therefore
reduce the cost associated with processing cards for merchants.
Merchants will also no longer have to store copy vouchers
for transactions that have been processed with chip and pin.
International POS supply credit card
solutions through their preferred partner EFT-POS.COM that will incorporate Chip and Pin and are involved
in the trial in Northampton in 2003.
APACS
press release detailing introduction of Chip and Pin at POS
into the UK (PDF Document)
APACS
Questions and Answers on Chip and PIN
Chip
and Pin Implementation
Visa
EU Chip Cards and EPOS Initiative
EMV Compliance information
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