By Andy McCue, 27 November 2006 17:05
NEWS
Chip and PIN has become a familiar fixture when paying for goods at most UK high-street retail outlets but one in 20 point-of-sale tills has yet to be upgraded
There are around 900,000 face-to-face point-of-sale terminals across the UK and 860,000 - 95 per cent - have been upgraded to chip and PIN, according to payment industry body Apacs.
The banking industry is claiming chip and PIN as a success pointing to the statistics that show counterfeit card fraud has been cut by £60m - a drop of 24 per cent - in the first year since the system was introduced.
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Valentine's Day this year marked the day when retailers who accept payment by credit and debit card with a signature rather than a PIN number became liable for any loss if the transaction proves to be fraudulent.
Many of the point-of-sale terminals still to be upgraded belong to small businesses but there are still some big retail names yet to commit to chip and PIN, such as cinema chain Odeon.
A spokeswoman for Odeon said the company currently does not use chip and PIN at any of its cinemas.
She said: "This is due to the negligible level of fraud reported resulting from face-to-face box office transactions."
But the spokeswoman added Odeon is in negotiations about installing chip and PIN, and is selecting a supplier for the service with the aim of introducing it with new systems that will be put in next summer.
A spokesman for Apacs said it is not compulsory for any retailer to install chip and PIN.
He said: "It is a business decision for each shop to consider. If a shop does not see any fraud going through its tills it may not see the need, at this moment in time, to upgrade."
But he warned they could become targets for fraud as criminals find it increasingly difficult to use stolen or counterfeit cards at stores with chip and PIN.
Comments
There are 5 comments. Join the discussion
1. anonymous
A great idea chip & pin,but why is it we have only just got it,when places like France have had it for ages? Also why do some modems in shops such as "Threshers " & the CO-OP tkae so long to operate?
2. Chris Tolmie
Chip and Signature is still required for people with certain disabilities as well as for overseas visitors who do not have Chip and PIN. Many shops do not understand this.
3. anonymous
At least in the UK they are trying to make it harder to commit fraud, in the US they are making it easier. Visa has a new RFID-enabled card payment system, sans-cash and sans-swipe. The new system enables consumers to pay for small items by waving an RFID-enabled card in front of a terminal. The card works at a distance of four inches. They already rarely check signatures or ID here, and the best bit is all the card companies try to sell you fraud insurance because apparently if they give people free money it’s our problem!
4. anonymous
It's not just retail outlets that are dragging their heels on this issue - here in the UK not all card suppliers have gone Chip & PIN either - I still have to sign whenever I use my Amex card in shops.
5. anonymous
Fraud cut by £60m - big deal. This is a minute percentage of the cost of implementing this dinosaur. The cost runs into billions, for both retailers and technology suppliers.
So who wins? Acquiring banks - fraud levels were a minimal percentage and built into the price. Customers - didn't pay directly for fraud anyway. Tony and his friends - the big headline fraud number comes out of the press!
The first glaring hole in the program, that has already been exploited, is that although APACS/EMV have reams of costly certifications for the Chip & PIN readers and pads, nobody has told the public how to recognise a genuine one yet. How many times have you checked? Secondly, there is a requirement for the PIN pad to be shielded from view. Next time you are shopping, see how many PIN numbers you can pick up from the customer in front - a great sport!
The USA have implemented a simple device to eliminate skimming that would have solved a majority of the problem. We are now following. Within 4 years mobile phones will be taking over from cards, I am sure EMV/APACS are already writing their specifications!
Finally, this huge reduction in fraud must have a knock on effect on the cost of credit cards. Anybody noticed that?