By Andy McCue, 16 September 2004 14:50
NEWS The fraud-busting chip and PIN card technology is fast becoming the established method of card payment in the shops of Northampton, home to the UK's first trials of the system.
The town was chosen to trial the technology last year because its demographic is most representative of the average town in the UK.
Chip and PIN is a scheme for credit and debit cards where cardholders are required to enter a PIN into a keypad instead of signing a receipt at the checkout of shops. The aim is to cut down on credit card fraud.
The latest figures from the national chip and PIN programme claim nearly three-quarters of Northampton residents who have been issued with the new cards by their banks use chip and PIN for at least half their purchases, while half use the cards for most of their purchases.
A recent survey suggested almost two-thirds of card-holders nationally have little or no knowledge of chip and PIN and over half are concerned the technology will increase the risk of their PIN being stolen.
But results from the Northampton trial show two-thirds feel the new cards are safer. Remembering PINs is also not proving to be a problem with just three per cent not knowing the PIN on their debit card -- although a third still don't know the PIN for their credit card.
The people at the chip and PIN programme claim Northampton's Abington high street now provides a "snapshot of the high street of the future" ahead of a national rollout of the technology.
Three in five cardholders across the UK have a chip and PIN card and retailers including Asda, Comet, Dixons and Tesco have now partially or fully rolled out the PIN terminals at their checkouts. Some, however, including Sainsbury's, have admitted they won't meet the 2005 deadline.
From 2005 liability for fraudulent card transactions will shift from card companies to retailers, meaning those shops without the capability to accept the more secure chip and PIN purchases are likely to run the risk being hit with bigger fraud bills.
Jemma Smith, spokeswoman for chip and PIN, said in a statement: "Chip and PIN has fast become the natural way to pay in Northampton, with both cardholders and retail staff adapting to the new technology quickly and easily. Above all, they appreciate the increased security chip and PIN provides against fraudsters."
Comments
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1. anonymous
Why on earth are we adopting out of date technology in this country? Norway was phasing out chip and pin (similar POS based PIN authorisation systems have been available in Scandinavia for about 20 years now) a few years ago in favour of photocards because it's too unreliable and open to abuse. Bizarre. We're so advanced here, aren't we.
2. anonymous
Norway's system is different to ours. Our's is much more French, albeit a different type of chip.
The US also uses PIN numbers, but they are verified via the cash machine network. Ours are verified via the chip, which changes the security issues dramatically.
3. Jamie Boshop
This is an old technology that has been used here in Spain for years. While it reduces credit card company liability it increases the number of stolen cards. Gangs collect PIN numbers in stores and then mug people for the cards outside the store. It seems Rip-Off Britian is not only a treasure island for corportate thieves!
4. anonymous
Personally I think Chip and Pin is a bad idea. I have several cards with this on and I don't know the number for any of them. I won't learn them until I have to.
5. Goten Xiao
So a biometric, unique, hard-to-fake signature is *LESS* secure than a four digit code easily stealable by anoyone in the queue behind you? Huh?
The number pad is in plain view of anyone behind you in the queue, and if someone takes the card after seeing the PIN, you're screwed.
Now, how hard would it be to have an electronic copy of your signature on the chip and a touch/tablet pad where you use a lightpen to sign the card? Wouldn't that be far more secure?
6. Terry C
I was using chip & pin in France 17 years ago . . . but they always asked for photo id too, and everyone carries that in France. I wonder how long it will be before the subject of id cards comes up in connection with chip & pin in the UK? Lloyds TSB stopped issuing debit cards with photos on last year . . . despite the fact that all the retailers I spoke to seemed to think it was an effective deterrent to fraud.
7. anonymous
Why cant you have a similar pin number for all the cards. Isnt that easy.